View files bankruptcy, inks RSA with Cantor Fitzgerald, RXR Realty

By Sarah Lizee

Olympia, Wash., April 3 – View, Inc. and some of its subsidiaries made a pre-packaged Chapter 11 filing on Tuesday in the U.S. Bankruptcy Court for the District of Delaware to implement a restructuring support agreement with Cantor Fitzgerald, LP, RXR Realty and other stakeholders, according to an 8-K filed with the Securities and Exchange Commission.

View, a smart building technologies company, said in court documents that it has continued to experience negative cash flow from operations as an emerging growth company.

The company said it expects to exit bankruptcy as a privately held company with a reorganized board of directors, whereby Howard Lutnick, chairman and chief executive officer of Cantor Fitzgerald, and Scott Rechler, chairman and CEO of RXR, will provide support and guidance to View on its operational structure and corporate strategy.

View said that as of the petition date, holders of 100% of the outstanding principal of the company’s prepetition term loans due 2027, 90.3% of the outstanding principal of company’s 6%/9% convertible senior PIK toggle notes and 8% of existing equity interests have supported the RSA.

The RSA contemplates a $17.5 million debtor-in-possession facility to be provided by existing lenders, which may be rolled into an exit facility, and upon emergence, a $32.5 million new-money exit facility.

Cantor Fitzgerald Securities is the agent for the DIP facility, which is set to mature in 90 days and bear interest at SOFR plus 750 basis points, payable monthly in cash, provided that the debtors may pay interest in kind at SOFR plus 1,400 bps. There is a 3% closing fee and a 2% commitment fee.

The company is seeking interim access to $10 million of the DIP facility, as well as access to cash collateral.

The pre-packaged plan, if confirmed, will also result in the equitization of over $274 million of the prepetition term loans and convertible notes claims into 64.2% of the equity of either the reorganized parent company or a new entity holding 100% of the equity interest of the reorganized parent company.

It also provides for the issuance of 35.8% of new common interests to the exit lenders.

The plan renders general unsecured claims unimpaired through the payment in full in the ordinary course of all general unsecured creditors, including employee and trade claims.

View said it will seek approval of various customary first-day motions from the bankruptcy court, including motions to obtain approval of the DIP term sheet and other relief intended to enable the debtors to continue their ordinary course operations.

The company hopes to receive approval of the transactions within 45 days.

In its petition, the company reported $100 million to $500 million in assets and $100 million to $500 million in liabilities.

The largest unsecured claims come from trustee Wilmington Trust, NA, based in Wilmington, Del., with a $222.26 million unsecured note claim; Momentum Glass, based in Westfield Spring, Tex., with a $2.51 million trade claim; DeSoto County Tax Collector, based in Hernando, Miss., with a $2.28 million property tax claim; Jefferson Fields, LLC, based in Palo Alto, Calif., with a $2.25 million landlord claim; and Cherry Hill Glass Co., Inc., based in Branford, Conn., with a $1.91 million trade claim.

Cole Schotz, PC serves as legal adviser and Solic Capital serves as financial adviser to View. Sidley Austin LLP serves as legal adviser to Cantor Fitzgerald. Gibson, Dunn & Crutcher LLP serves as legal adviser to RXR.

View is based in San Jose, Calif. The Chapter 11 case number is 24-10692.

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