Orexigen wins interim approval to access to $15 million of financing

By Caroline Salls

Pittsburgh, March 13 – Orexigen Therapeutics, Inc. obtained court approval to access $15 million in new-money debtor-in-possession financing from a controlling group of its senior secured noteholders on an interim basis, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The interim order also includes approval of a $350,000 upfront fee.

The total $70.35 million DIP facility includes $35 million of new term loans and roll up loans for $35 million under which pre-bankruptcy senior secured notes will be converted into DIP facility obligations. In addition, the $350,000 fee to the DIP lenders will be capitalized.

Interest on the DIP loan is Libor plus 1,000 basis points.

The loan matures on the earlier of the closing of the sale of assets, a default and July 31.

Wilmington Trust, NA is administrative agent, and the lenders are Baupost Group Securities, LLC, EcoR1 Capital Fund, LP, EcoR1 Capital Fund Qualified, LP, 1992 MSF International Ltd, 1992 Tactical Credit Master Fund, LP, Nineteen77 Global Multi-Strategy Alpha Master Ltd. and Nineteen77 Global Multi-Strategy Alpha (Levered) Master Ltd.

Orexigen is a San Diego-based biopharmaceutical company focused on the treatment of obesity. The company filed bankruptcy on March 12 under Chapter 11 case number 18-10518.

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