Vesta Holdings gets interim access to $37.88 million DIP facility

By Sarah Lizee

Olympia, Wash., Nov. 3 – Vesta Holdings, LLC got interim approval of a $37.88 million debtor-in-possession facility, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company was able to negotiate the superpriority priming DIP credit facility with its prepetition secured lenders, which hold over $125 million of funded debt.

Alter Domus (US) LLC is the administrative and collateral agent.

Of the DIP facility’s amount, $12.63 million is new money, and the rest is a roll-up. Following Wednesday’s interim order, the company has access to $6.31 million of the new money and $12.63 million of the roll-up.

The facility will mature 130 days after the petition date and bear interest at adjusted term SOFR for the one-month interest period then in effect plus 1,000 basis points. There is a 5% DIP commitment fee.

The lenders have also agreed to set aside a portion of their collateral to fund a wind-down of the debtors’ estates after a sale.

SRA Holdings, LLC, an affiliate of some of the prepetition lenders, is acting as stalking horse bidder for the company’s assets.

A further hearing on the DIP financing is scheduled for Nov. 9.

The Montgomeryville, Pa.-based wealth advisory, risk management services and insurance brokerage services company filed bankruptcy on Oct. 30 under Chapter 11 case number 22-11019.

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