Invacare receives interim approval of DIP financing package

By Sarah Lizee

Olympia, Wash., Feb. 2 – Invacare Corp. received interim approval of a debtor-in-possession financing package, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company has lined up a $70 million debtor-in-possession term loan facility via funds affiliated with prepetition term lender Highbridge Capital Management LLC that includes new money funding of $35 million and a rollup of prepetition term loans.

Following the interim order, the company has access to $17.5 million of the new money term loans and $17.5 million of the rollup.

The DIP financing also provides for a $17.4 million asset-based DIP revolver with PNC Bank, NA as agent, comprised of $11.6 million in undrawn commitments, of which $3.4 million will be used to cash collateralize letters of credit, and a rollup of $5.8 million in drawn commitments under a prepetition revolver.

Following the interim order, the company has full access to the ABL revolver.

The DIP term loan will bear interest at 15%, and the ABL DIP revolver will bear interest at the alternative base rate plus 425 basis points.

The DIP facilities include milestones that contemplate closing the restructuring transactions on a 120-day timeline.

The company also received court approval to use cash collateral with the consent of its prepetition secured lenders.

A final hearing is scheduled for Feb. 28.

Invacare is an Elyria, Ohio-based medical equipment manufacturer. The company filed bankruptcy on Jan. 31 under Chapter 11 case number 23-90068.

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