Joerns Healthcare wins access to DIP financing; plan hearing July 25

By Caroline Salls

Pittsburgh, June 26 – Joerns WoundCo. Holdings, Inc., doing business as Joerns Healthcare, obtained court approval to access a portion of a proposed $80 million in debtor-in-possession financing on an interim basis, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for July 25.

The company said some holders of its pre-bankruptcy first-lien obligations have agreed to backstop an $80 million multi-draw senior secured super-priority DIP facility, with Ankura Trust Co., LLC acting as administrative agent and collateral agent.

The facility will be comprised of a multiple-draw term loan facility in a total principal amount of up to $40 million, under which the company is seeking approval to request extensions of credit of up to $20 million upon entry of an interim order, and a roll-up facility in a total principal amount of up to $40 million, with a like amount of interim financing as under the new-money facility.

Under the roll-up facility, the lenders will be deemed to make loans on a dollar for dollar basis for every dollar of new-money loans funded by a DIP lender, and those loans will be deemed to be used to satisfy the DIP lenders’ pre-bankruptcy first-lien debt claims.

The facility will mature on the earliest of 120 days after the bankruptcy filing, the completion of a sale of all or substantially all of the debtors’ assets, the acceleration of the DIP loans and termination of the commitments, 38 days after the bankruptcy filing date if a final order has not been entered and the plan effective date.

Interest will accrue at the Base rate plus 500 basis points or Libor plus 600 bps.

Also on Wednesday, the court scheduled a combined plan of reorganization and disclosure statement approval hearing for July 25.

Joerns is a Charlotte, N.C.-based health care equipment provider. The company filed bankruptcy on June 25 under Chapter 11 case number 19-11401.

© 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.