The US Bankruptcy Court gave an order to Cyxtera Technologies, Inc. to obtain DIP financing on final basis on June 19, 2023. As per the order, the debtor has been authorized to obtain a term loan credit facility in the total amount of $200.47 million (consisting of $150 million in new money loan, $36 million in roll up loan and $14 million in transferred loans), from DIP lenders with Wilmington Savings Fund Society, FSB acting as the administrative agent. The DIP loan would carry an interest rate of 8.50% for SOFR Loans and 7.50% for ABR Loans.

As per the terms of the DIP agreement, the loan carries a commitment fee of 3% of DIP commitment. The DIP facility would mature either on the date that is 6 months after the effective date or the date on which all Loans are accelerated and all unfunded commitments (if any) have been terminated in accordance with this agreement, by operation of law or otherwise or the date the Bankruptcy Court orders a conversion of the Chapter 11 Cases to a chapter 7 liquidation or the dismissal or termination of the chapter 11 case or the Canadian Recognition Proceeding of any Debtor or on the effective date of the plan or on the date of consummation of the sale of substantially all assets or proceedings under or pursuant to the BIA have been commenced in respect of the Canadian Guarantors unless otherwise consented to in writing by the required lenders, 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 $0.10 million towards unpaid trustee fees and $7 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.