Synergy Pharmaceuticals gets final OK of $45 million new-money loan

By Caroline Salls

Pittsburgh, Feb. 26 – Synergy Pharmaceuticals Inc. obtained court approval to access $45 million in new-money debtor-in-possession financing on a final basis, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Synergy had already been granted access to a total of $19.5 million of the financing. As a result, the remaining financing will be advanced in connection with the final order.

As previously reported, Synergy 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, 2018 under Chapter 11 case number 18-14010.

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