The U.S. Bankruptcy Court issued an interim order approving Elements Behavioral Health’s motion for entry of interim and final orders (i) authorizing the Debtors to obtain secured postpetition D.I.P. financing, (ii) authorizing the use of cash collateral, (iii) granting adequate protection, (iv) modifying the automatic stay and (v) setting a final hearing.
As previously reported, “Madison Capital Funding is the agent, sole lead arranger, and sole bookrunner and Bank of Montreal (“BMO”) is the syndication agent, and CapitalSource Bank is the documentation agent. The D.I.P. Loan consists of a senior secured superpriority loan up to an aggregate amount of $14.2 million with $4.7 million available on an interim basis….The First Lien Credit Agreement provided the Company with an initial term loan of $76.0 million, a revolving line of credit with initial availability up to $7.0 million, and a delayed draw loan commitment of up to $10.0 million for capital expenditures and permitted acquisitions. The Prepetition First Lien Obligations (as defined in the DIP Credit Agreement) have a final maturity date of February 11, 2019…. The principal amount outstanding under the Prepetition First Lien Loan Documents to the Prepetition First Lien Lender as of the Petition Date was approximately $128.7 million (the ‘Senior Secured Claim’). The principal amount outstanding under the Prepetition Second Lien Loan Documents to the Prepetition Second Lien Lender as of the Petition Date was approximately $44.2 million (the ‘Junior Secured Claim’).” The Court scheduled a final hearing on June 26, 2018, with objections due by June 19, 2018.
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