GE Capital, Restructuring Finance Provides $2 Billion in Turnaround Financing Through 3Q 2009

GE Capital, Restructuring Finance ended 3Q as one of the most active providers of debtor-in-possession (DIP) and plan-of-reorganization (POR) financing in the U.S. and Canada, arranging or deploying approximately $2 billion throughout the first nine months of the year.

DIP financing is used by borrowers to fund ongoing working capital needs as they restructure under Chapter 11. POR, or exit financing, is utilized to support working capital needs upon emergence from bankruptcy.

“Financing is available for good companies with bad balance sheets, and our in-depth knowledge of the bankruptcy code and restructuring finance allows us to quickly respond to borrowers,” said Rob McMahon, managing director of GE Capital, Restructuring Finance. “This will be critical to more and more companies since the current pace of business bankruptcy filings will likely continue well into next year.”

Throughout 2009, GE Capital, Restructuring Finance has worked with turnaround advisors and corporate borrowers to meet their needs, including:

• Quebecor – Acted as co-agent on an $800 million exit financing for the U.S. and Canadian businesses of this worldwide leader in commercial printing. GE Capital Markets and GE Capital Markets (Canada) Ltd. acted as joint-lead arrangers.
• Spectrum Brands – Led a $197 million revolving credit facility as part of a $242 million POR financing for this global consumer products company. GE Capital Markets served as joint-lead arranger on the revolver. GE also provided interest rate risk management products and services.
• BI-LO, LLC – Led a $125 million DIP credit facility for one of the largest supermarket chains in the Southeastern U.S. GE Capital Markets arranged the transaction.
• Caraustar Industries, Inc. – Provided a $75 million DIP that converted to a POR facility upon the company’s emergence from bankruptcy. The company is one of North America's largest integrated manufacturers of 100% recycled paperboard and converted paperboard products.
• Sportsman’s Warehouse – Provided a $50 million POR credit facility to this outdoor sporting goods retailer. The loan was used upon the company’s emergence from Chapter 11 to refinance the $85 million DIP financing GE Capital provided the company earlier in the year.

About GE Capital, Restructuring Finance

GE Capital, Restructuring Finance is a leading provider of senior secured loans to distressed companies supporting Chapter 11 filings, plan-of-reorganizations and out-of-court restructurings. Visit gelending.com/clnews.

About GE Capital

GE Capital offers consumers and businesses around the globe an array of financial products and services. GE (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. For more information, visit gecapital.com or follow company news via Twitter (@GECapitalNews).