< meta name="DC.Date.Valid.End" content="20050825"> Amendment Nine: Tower - 11

Thursday, February 03, 2005

Tower - 11

Finally, they actually held out a little longer than anyone had anticipated, but they went the way of chapter 11 yesterday (their website has details). In case you missed it here are the specs on the DIP ...

DIP Total: $725M (huge, largest since UAL)

-Tranche A: $300M Revolver @ Prime + 175 or LIBOR + 275. $100M of total available in L/Cs.
-Tranche B: $425M term loan @ prime + 175 or LIBOR + 375.

Check out the fees though to JP, .5% committment plus 2.75% for L/Cs outstanding. That's a good revenue stream, no wonder they gave them so much.

The 11 proceedings will be of interest for two reasons: First, as a few of you remember, back in May, Tower issued a second lien financing deal of about $155M. This will no doubt be a good case study in how the second lien lenders play the negotiation.

Also of interest will be whether or not Tower runs to preserve their NOL (quickly approaching the $25M+ neighborhood) and if they do, how the creditors respond.