Synergy Pharmaceuticals granted access to $11.5 million in financing

By Caroline Salls

Pittsburgh, Dec. 14 – Synergy Pharmaceuticals Inc. obtained court approval to access $11.5 million of a proposed $45 million in new-money debtor-in-possession financing on an interim basis, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

Synergy said it has entered into a binding term sheet with its existing first-lien lenders for $155 million of debtor-in-possession financing, comprised of $110 million of roll-up pre-bankruptcy loan obligations and $45 million of new-money loans to support operations during the Chapter 11 and sale process.

CRG Servicing LLC is the administrative agent.

The DIP facility will mature on the earliest of April 9, the closing of a sale of all or substantially all the company’s assets and acceleration of the loans.

Interest will accrue at a rate of Libor plus 950 basis points.

Synergy is a New York-based biopharmaceutical company focused on the development and commercialization of novel gastrointestinal therapies. The company filed bankruptcy on Dec. 12 under Chapter 11 case number 18-14010.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.