Orexigen Therapeutics filed with the U.S. Bankruptcy Court a motion for entry of interim and final orders approving D.I.P. financing; authorizing use of cash collateral; granting adequate protection and super-priority administrative claims and scheduling a final hearing.
The motion explains, “On the terms set forth in the DIP Loan Agreement, Debtors obtain the DIP Facility from the DIP Lenders consisting of postpetition financing in an aggregate principal amount of up to $70,350,000, which includes (i) up to $35,000,000 of new money loans (‘New Money Loans’), (ii) $35,000,000 of roll-up loans (‘Roll-Up Loans’, and together with the New Money Loans, the ‘DIP Loans’), and (iii) a $350,000 fee (the ‘Upfront Fee’), of which, upon entry of and pursuant to this Interim DIP Order, (1) up to $7,500,000 of New Money Loans may be borrowed by the Debtor; (2) up to $7,500,000 of Roll-Up Loans may be incurred, which the Roll-Up Lenders will be deemed to have made to the Debtor at the same time and in the same amount as each New Money Loan is borrowed under clause (1); and (3) the Debtor will incur the Upfront Fee to the DIP Lenders, which will be capitalized and added to the principal amount of the DIP Loans (collectively, the ‘Interim DIP Facility’).”
All loans outstanding under the D.I.P. facility shall bear interest for each interest period at a rate per annum equal to the LIBO Rate for such period plus 10.00% per annum. During the continuance of a D.I.P. event of default, outstanding obligations shall bear interest at a rate equal to 2% per annum above the non-default interest rate indicated above and such interest shall be payable monthly in arrears in cash on each interest payment date.
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