The US Bankruptcy Court gave an order to Omega Therapeutics, Inc. to obtain DIP financing on an interim basis on February 10, 2025. As per the order, the debtor has been authorized to obtain term loan facility in an aggregate principal amount of $9.8 million of which $3.9 million shall be available to the DIP Borrower within three business days of the entry of this Interim Order, an additional $2.8 shall be available to the DIP Borrower for borrowing solely in accordance with the Budget within three business days of the entry of a final order granting the relief requested in the Motion on a final basis from Pioneering Medicines 08-B, Inc. Interest shall accrue on the DIP Loans at the rate of 10% per annum, and shall be payable monthly, on the first business day of each month, in arrears, in accordance with the DIP Budget. Interest shall accrue in kind and shall be paid in full in cash on the Maturity Date or satisfied through a credit bid if the DIP Lender is the Successful Bidder.
As per the terms of the DIP agreement, the loan carries A lending fee equal to 1.00% of DIP Loans. The maturity date of the DIP Facility shall be the earliest to occur of the following, upon which the DIP Lender?s commitment to provide the DIP Loans and the DIP Facility shall terminate, and the DIP Obligations and any Prepetition Note Obligations that have not been discharged with Roll Up DIP Loans shall be indefeasibly paid in full in cash 30 days after entry of the Petition Date if the Final Order has not been entered on or prior to the expiration of such 30-day period or April 21, 2025 or the consummation of a sale of all or substantially all of the assets of the Debtor or acceleration of or termination of the DIP Loans pursuant to the DIP Documents and the substantial consummation of a plan filed in the Chapter 11 Case that is confirmed pursuant to an order entered by the Bankruptcy Court. 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 $0.07 towards fees and expenses and 0.13 million towards unpaid professional fees.
Final hearing scheduled on March 12, 2025. The proceeds of DIP financing would be used to to fund the operating expenses of the DIP Borrower, to fund the administration of the Chapter 11 Case, an Acceptable 363 Sale, and a chapter 11 plan and related matters, including the claims resolution process, and the wind-down of the Debtor?s estate, to fund the reasonable, documented, and allowed fees and expenses of the DIP Borrower?s professionals and to pay other amounts as set forth in and subject to the DIP Budget
