Progrexion receives interim access to DIP financing package

By Sarah Lizee

Olympia, Wash., June 7 – PGX Holdings, Inc., which does business as Progrexion, received interim approval of a debtor-in-possession financing package from prepetition secured lenders, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Progrexion has about $423.5 million of total funded debt, including $243.5 million under a first-lien term loan with Blue Torch Finance LLC as administrative agent and $180 million under a second-lien term loan with Prospect Capital Corp., as lender and majority equity holder.

The DIP facility includes a $19.925 million new-money commitment, including $12 million of availability on an interim basis, and has a 105-day maturity.

The DIP facility also includes a $42.75 million roll-up of prepetition debt, including $2.9 million of emergency bridge financing provided during the week prior to the petition date.

Interest on the new money and the $2.9 million amount is 8½% per annum. Interest on the remaining amount of the rollup is the same as under the prepetition first-lien agreement.

There is a 3.5% closing fee and a $75,000 agent fee.

The company also received interim approval to use the cash collateral of its prepetition secured lenders.

A final hearing is scheduled for June 28.

Progrexion is a provider of consumer credit repair services based in Salt Lake City. The company filed bankruptcy on June 4 under Chapter 11 case number 23-10718.

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