Bayside to Submit Dolan Restructuring Proposal
The Dolan Company announced that it entered into the seventh amendment to its third amended and restated credit agreement dated December 6, 2010 that provides the company with access to its revolver, while the company and lenders negotiate a term sheet for restructuring the company’s balance sheet. The agreement also provides that HIG Capital affiliate Bayside Capital, which currently holds participation interests covering a majority of the indebtedness outstanding under the credit agreement, can become a lender under the agreement. And it requires the company and its lenders to agree on a term sheet for restructuring the company’s capital structure promptly after receipt of a restructuring proposal from Bayside Capital.
The amendment also temporarily waives the company’s default with respect to certain covenants and obligations existing or anticipated as of December 31, 2013, reduces the amount available in the revolving credit facility, increases the interest rate on outstanding loan amounts by 2% per year, requires an additional fee equal to 2% of the sum of the outstanding term loans and revolving commitments, and requires the company to have engaged a chief restructuring officer. As previously announced, the company appointed Kevin Nystrom, managing director of Zolfo Cooper, as its chief restructuring officer.
The Dolan Company is a provider of professional services and business information to the legal, financial and real estate sectors.