Orianna granted court approval to access $10.77 million of financing

By Caroline Salls

Pittsburgh, March 9 – Omega Healthcare Investors, Inc. tenant 4 West Holdings, Inc. (Orianna) obtained court approval to access $10.77 million of a proposed $30 million og debtor-in-possession financing from Omega on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the Northern District of Texas.

The final hearing is scheduled for April 5.

The DIP financing will be used to repay in full the debtors’ current working capital lender and to provide them with additional liquidity to fund ongoing business operations.

Omega’s commitment to provide the DIP financing is conditioned on obtaining first-priority liens on the debtors’ assets and being granted super-priority claim status in the bankruptcy cases.

Revolving DIP loans will accrue interest at Libor plus 900 basis points and the DIP term loan at Libor plus 550 bps.

The financing will mature on the earliest of Sept. 30, 2018, the effective date of a Chapter 11 plan and the acceleration of the loans and termination of the commitments.

Omega is a real estate investment trust investing in and providing financing to the long-term care industry. It is based in Hunt Valley, Md. Dallas-based 4 West holds the Orianna Health Systems trademark. It filed for bankruptcy on March 6 under Chapter 11 case number 18-30777.

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