The US Bankruptcy Court gave an order to Wesco Aircraft Holdings, Inc. to obtain DIP financing on an interim basis on June 2, 2023. As per the order, the debtor has been authorized to enter into note purchase agreement, consisting of new money notes in the amount of $110 million and Wilmington Savings Fund Society, Fsb as notes agent for the purchasers. The DIP loan would either carry an interest rate of LIBOR plus 8.5% p.a., with a LIBOR floor of 4% p.a., along with ABR 7.5% p.a. interest if applicable.

The issuer will bear a default interest rate of 2% p.a. and in the case of all other amounts, at a rate equal to 2.00% per annum plus the rate applicable to DIP Notes that accrue interest based on ABR. The Issuer shall pay on the Closing Date, an upfront premium in an amount equal to 5.00% of the aggregate amount of DIP commitments in effect on the closing date. If the Termination Date occurs, each DIP Purchaser will receive on such Termination Date, a premium in an amount equal to 3.00% of the aggregate principal amount of DIP Notes prepaid.

The DIP facility would mature either on March 1, 2024. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of up to $5 million towards unpaid professional fees, administrative expenses and priority lien upon and security interest in the debtor’s collateral. The final hearing is scheduled for June 29, 2023.