The US Bankruptcy Court gave an order to Ebix, Inc. to obtain DIP financing on a final basis on January 26, 2024. As per the order, the debtor has been authorized to obtain $35 million in new money term loans and $70 million in rollup term loan from Regions Bank, PNC Bank National Association, BMO Bank N.A., Fifth Third Bank, National Association, Keybank National Association, First-Citizens Bank & Trust Company, Cadence Bank, Trustmark National Bank, ALCOF II NUBT, L.P., ALCOF III NUBT, L.P. and Banc of America Credit Products, Inc. with Regions Bank acting as the administrative agent. The individual commitments of new money term loan lenders is, Regions Bank of $6.27 million, PNC Bank National Association of $7.32 million, BMO Bank N.A. of $9.06 million, Fifth Third Bank, National Association of $3.28 million, Keybank National Association of $3.03 million, First-Citizens Bank & Trust Company of $2.11 million, Cadence Bank of $1.64 million, Trustmark National Bank of $0.70 million, ALCOF II NUBT, L.P. of $0.67 million, ALCOF III NUBT, L.P. of $0.46 million and Banc of America Credit Products, Inc. of $0.45 million.

The individual commitments of rollup term loan lenders is, Regions Bank of $12.55 million, PNC Bank National Association of $14.64 million, BMO Bank N.A. of $18.12 million, Fifth Third Bank, National Association of $6.57 million, Keybank National Association of $6.05 million, First-Citizens Bank & Trust Company of $4.22 million, Cadence Bank of $3.28 million, Trustmark National Bank of $1.41 million, ALCOF II NUBT, L.P. of $1.34 million, ALCOF III NUBT, L.P. of $0.92 million and Banc of America Credit Products, Inc. of $0.89 million. The DIP loan would either carry an interest rate of Base Rate Loan plus 1% p.a., with a base rate of 9% p.a., or SOFR Loan plus 10%, along with an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries an upfront fee of 3% and an exit fee of 2% of such dip loan.

The DIP facility would mature either on 240 days after the petition date i.e., August 13, 2024, or on the effective date of the plan or the expiration of any DIP Order by its terms or upon its termination, reversal, vacatur, or modification, 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 trustee fees and %0.50 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.