The US Bankruptcy Court gave an order to Monitronics International, Inc. to obtain DIP financing on an interim basis on May 16, 2023. As per the order, the debtor has been authorized to obtain a new money term loan in the amount of $398.6 million from Expected to be all of the 2019 Takeback Term Loan Lenders with Alter Domus (US) LLC acting as the administrative agent. The DIP loan would either carry an interest rate of base rate plus 6% p.a., with the adjusted term SOFR rate plus 7% p.a. along with an additional 2% p.a. interest in the event of default.

The DIP facility would mature either on six months after 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 $0.1 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The final hearing on the motion shall be held on June 26, 2023.