Morgan Stanley Provides $90 Million Exit Loan to Colt

January 15, 2016

Colt emerged from chapter 11 protection with approximately $200 million less debt and a new ownership group led by Fidelity National.

On January 13, 2015, Colt Defense LLC, the maker of iconic brand hand guns and military weaponry, emerged from chapter 11 protection with approximately $200 million less debt and a new ownership group led by Fidelity National. Willkie represented client Morgan Stanley Senior Funding as lead lender under Colt's new $90 million senior secured credit facility. The facility is secured by, among other things, all of Colt's intellectual property owned by newly formed special purpose intellectual property holding companies. Morgan Stanley also provided debtor-in-possession financing to Colt during its bankruptcy case and provided critical support to the complex restructuring agreement that enabled Colt to emerge from an extended and contentious bankruptcy process. Colt emerged with an additional $45 million senior facility, a $50 million third lien facility, and up to $7 million in fourth lien notes.

The Willkie deal team was led by partners Leonard Klingbaum and John Longmire, with assistance from partner Eugene Chang on IP-related matters, and included counsel Cindy Chernuchin; associates Phillip Lee, Davina Mansur, Rachel Dooley, Jennifer Hardy and Jennifer Schanes; and law clerk Thea Rogers.