ViewRay seeks approval of modified $9 million DIP facility

By Sarah Lizee

Olympia, Wash., Aug. 8 – ViewRay, Inc. is seeking approval of a modified $9 million debtor-in-possession facility, according to a supplemental motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, when the company filed bankruptcy in mid-July, it lined up a $6 million DIP facility with prepetition lender MidCap Financial Services, LLC. The multiple-draw secured term loan DIP facility was set to mature on Sept. 27 and bear interest at 15% per annum, with a 3% commitment fee and a 4% exit fee. The DIP financing was also set to include an $18 million rollup of prepetition debt.

The company said Monday that access to cash provided under an interim cash collateral order, together with other relief granted by the court after the first-day hearing, has allowed the debtors to continue to operate while they pursue a going-concern sale of their business.

However, the debtors presently expect they will need access to additional financing in order to see the sale process through to its conclusion.

To this end, the debtors and the DIP lender negotiated to refine the terms of the financing.

Changes include extended the sale process milestones by a week to permit a more thorough sale process, increasing the total commitment amount to $9 million from $6 million, increasing the initial borrowing amount to $2 million from $1 million, and providing more customary conditions precedent to that borrowing.

Changes also include deferring accrual of the 3% loan commitment fees until loans are actually funded, calculating those fees based on the actual amounts loaned rather than the total commitment amount, and extending the milestone to obtain a final cash collateral order to accommodate the Aug. 21 hearing on the DIP financing.

Denver-based ViewRay designs, manufactures and markets MRIdian, a magnetic resonance image-guided radiation therapy system to simultaneously image and treat cancer patients. The company filed Chapter 11 bankruptcy on July 16 under case number 23-10935.

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