The US Bankruptcy Court gave an order to Cano Health, Inc. to obtain DIP financing on an interim basis on February 7, 2024. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $50 million out of $150 million from lenders with Wilmington Savings Fund Society, FSB acting as the administrative agent. The DIP loan would either carry an interest rate of SOFR plus 1,100 bps, or an alternate base rate plus 1,000 bps, along with an additional 2% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a backstop fee of 4.5% p.a. The DIP facility would mature either on 8 months after the closing date or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The final hearing shall be occurred on March 7, 2024.