NS8 receives final court OK to access $10 million DIP financing

By Sarah Lizee

Olympia, Wash., Dec. 15 – NS8 Inc. received final court approval to access a $10 million senior secured multi-draw term loan promissory note facility, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Alter Domus (US), LLC is the debtor-in-possession agent for the facility, which consists of an $8 million tranche A term loan and a $2 million tranche B term loan.

The tranche A term loan will bear interest at 15%, provided that at the option of the borrower, all interest payable on any interest payment date may be paid in kind through the issuance of additional tranche A term loans at the rate of 20%.

The tranche B term loan will bear interest equal to two times the outstanding principal amount.

The maturity date will be the earliest of 18 months from the petition date, the date the amount on deposit in the recovery and collateral account equals or exceeds $14 million, the date the case is converted, the date term loans are accelerated, the effective date of a plan and 35 days after the interim order has been entered with no final order entered by then.

Proceeds will be used to fund general corporate purposes and administrative expenses of the case.

NS8 is a cyber-fraud prevention company based in Las Vegas. The company filed Chapter 11 bankruptcy on Oct. 27 under case number 20-12702.

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