Daily News: May 24, 2013

School Specialty Gets Exit Financing from WFCF, GE Capital

School Specialty announced that the U.S. Bankruptcy Court for the District of Delaware entered an order confirming the company’s second amended joint plan of reorganization. School Specialty said it expects the plan to become effective within the next two weeks.

Under the plan, School Specialty will reduce its total debt obligations by half and enable the company to secure $320 million in new financing. According to an 8K filing dated May 9, 2013 the lenders were led by Wells Fargo Capital Finance as administrative agent, co-collateral agent, co-lead arranger and joint bookrunner. GE Capital Markets is shown as co-collateral agent, co-lead arranger, joint bookrunner and syndication agent.

Existing common stock will be extinguished under the plan, and no distributions will be made to holders of the company’s current equity. New common stock with voting rights will be issued to the company’s current noteholders and ad hoc DIP lenders. According the filing, the ad hoc DIP lenders were led by U.S. Bank as administrative agent.

Previously on abfjournal.com:

Court Approves School Specialty’s Disclosure Statement, Friday, April 26, 2013