The US Bankruptcy Court gave an order to CareMax, Inc. to obtain DIP financing on a final basis on December 18, 2024. As per the order, the debtor has been authorized to obtain a term loan financing facility in the remaining amount of $110 million out of the aggregate $122 million, consisting of $18.5 million in new money DIP loans and $91.5 million in DIP rolled-up loans with Acquiom Agency Services LLC acting as the administrative agent. The DIP loan would carry an interest rate of S + 1100 bps, paid-in-kind.
The DIP facility would mature either on May 17, 2025, i.e., six-month anniversary of the Petition 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 $1.4 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The proceeds of the DIP financing will used to repay prepetition obligations solely in connection with the deemed funding of the DIP rolled-up loans, to pay amounts due to lenders and the agents hereunder and professional fees and expenses incurred by lenders, to provide working capital, and for other general corporate purposes of the loan parties.
