Final DIP Financing Approved for Valeritas Holdings, Inc.
March 13, 2020 at 12:00 am EDT
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The US Bankruptcy Court gave an order to Valeritas Holdings, Inc. to obtain DIP financing on a final basis on March 13, 2020. As per the order, the debtor has been authorized to obtain a multi-draw term loan facility in the amount of $12 million from HB Fund LLC. The DIP loan would carry an interest rate of 18% p.a. As per the terms of the DIP agreement, the loan carries a commitment fee of 12.5% of the interim commitment and 12% of the aggregate principal amount of the final commitment and origination fee of $0.2 million. The DIP facility would mature either on April 3, 2020 or the date which is thirty days following the entry of the Interim order (i.e. March 15, 2020) if the bankruptcy court has not entered the final order on or prior to such date or the date of the debtors’ receipt of notice of the acceleration of any of the DIP loans and the termination of the commitments to make the DIP loans resulting from the occurrence of an event of default or the date of substantial consummation of a confirmed plan of reorganization or the filing of a motion by the debtors seeking dismissal or conversion of cases, 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 $0.03 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The proceeds of DIP financing would be used only for the purposes specifically set forth in this interim order and the DIP documents, and in compliance with the approved budget.
Valeritas Holdings, Inc. is a United States-based medical technology company. The Company's product, V-Go Wearable Insulin Delivery device (V-Go), is a wearable, basal-bolus insulin delivery device for adult patients requiring insulin that enables patients to administer a continuous preset basal rate of insulin over 24 hours. V-Go is a small wearable and completely disposable insulin delivery device that a patient adheres to his or her skin every 24 hours. V-Go enables patients to closely mimic the body's normal physiologic pattern of insulin delivery throughout the day and to manage their diabetes with insulin without the need to plan a daily routine around multiple daily injections. It has developed V-Go utilizing its h-Patch platform as a patient-focused solution to address insulin therapies. Its h-Patch platform facilitates the subcutaneous delivery of injectable medicines to patients across a range of therapeutic areas.