NanoString gets final approval of amended $47.5 million DIP financing

By Sarah Lizee

Olympia, Wash., March 20 – NanoString Technologies, Inc. received final approval of an amended $47.5 million new-money debtor-in-possession facility, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The financing was heavily amended to reflect a global settlement between the company, its lenders and the official committee of unsecured creditors.

As a reminder, the financing is being provided by Braidwell Partners Transaction Master Fund LP and Deerfield Partners, LP, holders of the company’s 2026 secured notes. Wilmington Trust, NA is the administrative agent.

Originally, the company sought approval of a financing package that would include the $47.5 million in new-money term loan commitments and a rollup of about $95 million of prepetition notes into a term loan.

However, the financing was amended so that there is now no rollup of prepetition notes.

In addition, there is a revised waterfall on sale proceeds, with the proceeds being used to repay the new-money DIP facility first.

Next in line will be a $25 million portion of the prepetition 2026 notes that will be deemed secured and bear interest at 6.95% PIK.

After that, the other $195.1 million of 2026 notes are all going to be unsecured and rank pari with all unsecured creditors, except for a $43.4 million that will be subordinated to all general unsecured claims and paid last under the waterfall, to the extent there are enough proceeds to do so.

There is also a 4.5% exit fee now via the amendment.

Counsel for the debtor said at a Wednesday hearing that the amendment provides several benefits to the company, including far less secured debt, less expensive DIP financing, and less administrative expense.

The interest rate on the new money is SOFR plus 400 basis points, payable in kind.

The financing is set to mature July 31.

NanoString Technologies is a Seattle-based biotech company specializing in cancer diagnostic tools. The company filed bankruptcy on Feb. 4 under Chapter 11 case number 24-10160.

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