Davis Polk is advising JPMorgan Chase Bank, N.A. as administrative agent and collateral agent, and J.P. Morgan Securities LLC, as sole bookrunner and sole lead arranger under a $500 million superpriority debtor-in-possession credit facility to Exide Technologies and certain of its non-debtor subsidiaries, consisting of a $225 million first-out asset-based revolving credit facility and a $275 million second-out term loan, which are secured by collateral in the United States and 17 foreign jurisdictions. The DIP facility has been approved by the bankruptcy court on an interim basis and is subject to final bankruptcy court approval and various other conditions. Under the terms of the interim approval, Exide Technologies has full access to the revolver and immediate access to $170 million of the term loan. The final hearing to approve the DIP facility has been scheduled for July 11, 2013.
Exide Technologies, which together with its direct and indirect subsidiaries, has operations in more than 80 countries, is a global leader in stored electrical energy solutions and one of the world’s largest producers and recyclers of lead-acid batteries. Exide Technologies filed a voluntary petition for Chapter 11 protection on June 10, 2013, citing rising production costs and significant exposure to the recent downturn in European markets.
The Davis Polk insolvency and restructuring team includes partner Damian S. Schaible and associates Darren S. Klein, Eric L. Ruiz and Angela M. Libby. The credit team includes partner Kenneth J. Steinberg and associates Stevan R.B. Nicholas and Francesca Campbell. Partner Kathleen L. Ferrell provided tax advice. Counsel Hayden S. Baker provided environmental advice. All members of the Davis Polk team are based in the New York office.
