The US Bankruptcy Court gave an order to Nogin, Inc. to obtain DIP financing on an interim basis on December 7, 2023. As per the order, the debtor has been authorized to obtain a credit facility in the amount of $19.23 million out of aggregate $24.7 million with BRF Finance Co., LLC acting as the administrative agent. The DIP loan would either carry an interest rate of 15% p.a., along with an additional 2% p.a. interest in the event of default.

The DIP facility would mature either on January 2, 2024, 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 $0.25 million towards unpaid professional fees / administrative expenses and priority lien upon and security interest in the debtor?s collateral. The proceeds of DIP financing would be used to pay in full and termination of the obligations under the Bridge Note, for working capital and other general corporate purposes, for professional fees and expenses of administering the Chapter 11 Cases, for fees, expenses, interest, and other amounts payable under the DIP Facility.