The US Bankruptcy Court gave an order to IMRIS Inc. to obtain DIP financing on an interim basis on May 28, 2015. As per the order, the debtor has been authorized to obtain a term loan credit facility in the amount of $3.5 million out of total DIP of $5.35 million consisting of Roll-Up Loans in the aggregate principal amount of $0.93 million, Imaging and Service Business Loans in the aggregate principal amount of $4.12 million, and Robotics Business Loans in the aggregate principal amount of $0.3 million from Deerfield Management Company, L.P. with Deerfield Special Situations Fund, L.P., acting as the administrative agent. The DIP loan would carry an interest rate of 19% simple interest per annum along with an additional 10% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a Closing Fee of 2% of the multiple draw term loan commitments. The DIP facility would mature either on August 7, 2015 or on the effective date of the plan or the date that is 20 days after the petition date, unless on or before such day the Bankruptcy Court shall have entered the final order, whichever is earlier. With respect to the Robotics business loans, the maturity date is defined as the earlier of the date that is 28 days after the Petition Date, or such later date that the Initial Lenders otherwise agree in their sole and absolute discretion.

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 $0.06 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral. The proceeds of the Imaging and Service Business Loans shall be used to refinance the outstanding Revolving Loans under the Prepetition Credit Agreement; Imaging and Service Business Loans shall be used to provide for the ongoing working capital and general corporate and operating purposes of the Borrowers' imaging and service business during the pendency of the chapter 11 cases; pay fees, interest and expenses associated with the Loans and the Prepetition Credit Agreement, and pay the Carve-Out, including without limitation the payment of the fees of the U.S. Trustee's office, in each case, in accordance with the Budget. Robotics Business Loans solely shall be used to provide ongoing working capital of the Borrowers' robotics business during the pendency of the chapter 11 cases.

Richard A. Chesley of DLA Piper LLP acted as legal advisor for debtor and Leonard Klingbaum of Willkie Farr & Gallagher LLP acted as legal advisor for Deerfield Management Company, L.P.