Invacare receives final approval of DIP financing package

By Sarah Lizee

Olympia, Wash., March 8 – Invacare Corp. received final approval of a debtor-in-possession financing package, according to an order filed Wednesday 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.

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.

The DIP term loan bears interest at 15%, and the ABL DIP revolver bears 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 final court approval to use cash collateral with the consent of its prepetition secured lenders.

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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