Internap interim DIP financing approved; plan hearing set for May 4

By Caroline Salls

Pittsburgh, March 19 – Internap Corp. obtained court approval to access $70 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.

The final hearing is scheduled for May 4.

The financing will be provided by a group representing 77% of Internap’s pre-bankruptcy term loan lenders.

Combined with existing operating cash flows, the company said the financing will allow all of Internap’s businesses to continue operating as usual and position the company to drive future growth.

The DIP financing package will be structured as a delayed-draw term loan providing for a limit of $75 million, including a $5 million refinancing of new incremental loans.

The DIP facility will mature on the earliest of six months from the bankruptcy filing date, the conversion or dismissal of the Chapter 11 cases, the sale of substantially all of the company’s assets, the acceleration of the DIP facility and the plan effective date.

The DIP facility will bear interest at Libor plus 1,000 basis points.

The DIP facility will convert into a priority exit facility upon emergence from the Chapter 11 cases. The exit facility will have a three-year maturity and bear interest at a rate of Libor plus 1,000 bps.

In addition, the court also scheduled the hearing on confirmation of the company’s plan of reorganization and approval of the related disclosure statement for May 4.

Internap is an Atlanta-based provider of IT Infrastructure solutions. The company filed bankruptcy on March 16 under Chapter 11 case number 20-22393.

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