The US Bankruptcy Court gave an order to PhaseBio Pharmaceuticals, Inc. to obtain DIP financing on a final basis on November 15, 2022. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $15 million (consisting of term loan credit facility in the principal amount of $15 million, less the amount of the Roll-Up Loan of $9.1 million) from JMB Capital Partners Lending, LLC. The DIP loan would cajunerry an interest rate of 14% p.a., along with an additional 5% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a commitment fee of 2% of the DIP loan commitment and exit fee of 5% of DIP loan commitment. The DIP facility would mature either on June 30, 2023, or on the effective date of the plan or on the date of consummation of the sale of substantially all assets or entry of an order converting the chapter 11 case to a case under chapter 7 of the bankruptcy code or dismissing the chapter 11 case or the acceleration of the outstanding Obligations under the DIP credit agreement, 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 $0.08 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.

The proceeds of the DIP financing shall be used to pay in full the outstanding prepetition first lien lender secured obligations with proceeds of the roll-up loan, and to fund payments related to working capital and other general corporate purposes of the borrower, including the payment of the DIP fees, the lender expenses and professional fees and expenses; and bankruptcy-related expenses. The DIP lender is represented by Robert M. Hirsh and Jordana L. Renert, of Lowenstein Sandler LLP as its legal counsel.