The DIP lenders are the same as the lenders under its April 15, 2014 term loan and asset-based loan agreement. According to a related 8-K filing, Bank of America served as administrative agent and collateral agent. Wells Fargo Bank, Royal Bank of Canada, JPMorgan Chase Bank, Fifth Third served as lenders.
The financing will be used to provide working capital for the company in its day-to-day operations and to fund the auction and sales process. It will also be used to refinance its 2014 term loan agreement.
Subject to approval from U.S. and Canadian bankruptcy courts, $25 million of the DIP financing will be made available to the company immediately, with the rest being available upon court approval at a second hearing held on or around November 30, 2016.
As part of the Chapter 11 process, Performance Sports Group also entered into a stalking horse asset purchase agreement with an investor group led by Sagard Capital and Fairfax Financial for $575 million, in which the investor group will acquire substantially all of the company’s assets.
Centerview Partners has been engaged as strategic financial advisor and investment banker. Alvarez & Marsal has been engaged as restructuring professional and Brian J. Fox, managing director with Alvarez & Marsal, has been appointed as chief restructuring officer. Stikeman Elliott and Paul, Weiss, Rifkind, Wharton & Garrison are serving as Canadian and U.S. legal advisors, respectively. Bennett Jones is serving as counsel to the independent members of the board.
Performance Sports Group is a developer and manufacturer of ice hockey, roller hockey, lacrosse, baseball and softball sports equipment, as well as related apparel and soccer apparel.