Pernix Therapeutics granted access to $20.1 million of DIP financing

By Caroline Salls

Pittsburgh, Feb. 21 – Pernix Therapeutics Holdings, Inc. obtained interim court approval to access $20.1 million of debtor-in-possession financing from Highbridge Capital Management, LLC, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for March 14.

As previously reported, Highbridge has committed to provide $29.1 million in DIP financing, with an additional accordion facility of $5 million.

Proceeds from the DIP financing, in addition to cash flow from operations, will be used to ensure that the products remain available to patients and will otherwise fortify the company’s balance sheet.

Cantor Fitzgerald Securities is the DIP financing agent.

Interest will accrue at a rate of Libor plus 600 basis points.

The facility will mature 180 days from closing.

The specialty pharmaceutical company is based in Morristown, N.J. It filed bankruptcy on Feb. 18 under Chapter 11 case number 19-10323.

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