Anaergia unit Rialto seeks up to $67.5 million DIP financing package

By Sarah Lizee

Olympia, Wash., Sept. 8 – Anaergia Inc. subsidiary Rialto Bioenergy Facility, LLC is seeking approval of an up to $67.5 million debtor-in-possession financing package from its bondholders, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of California.

The senior secured super-priority multi-draw term loan facility would consist of up to $30 million as a new-money term loan facility and a rollup of prepetition bonds. The rollup will be $1.25 for each $1.00 of new money.

The company is seeking interim access to $15 million of the new money and $18.75 million of the rollup.

The DIP agent is UMB Bank, NA.

The facility is set to mature on April 30, 2024.

New money will bear interest at SOFR plus 1,000 basis points, payable in arrears in cash on a monthly basis, and the rollup will bear interest at SOFR plus 1,000 bps, payable in kind in arrears on a monthly basis by being capitalized.

The default rate in any case would rise by 2%.

There is a 3% commitment fee on new money.

There is also a 1.5% backstop fee, and a 3% exit fee on new money.

The term sheet shows certain deadlines under the proposed financing, including closing a sale by April 30, 2024.

Anaergia is a Burlington, Ont.-based company that was created to turn organic waste into renewable natural gas, fertilizer and water using proprietary technologies. Subsidiary Rialto Bioenergy is based in Carlsbad, Calif., and filed Chapter 11 bankruptcy on May 25 under case number 23-01467.

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