The US Bankruptcy Court gave an order to Benefytt Technologies, Inc. to obtain DIP financing on final basis on June 20, 2023. As per the order, the debtor has been authorized to obtain a credit facility in the amount of $4.0 million of new letters of credit and term loan facility of $35 million from Phoenix 2023 Merger Sub LLC with Wilmington Savings Fund Society, FSB acting as the administrative agent. The DIP loan would carry an interest rate of 12% p.a. As per the terms of the DIP agreement, the loan carries a commitment fee of 3% p.a. and termination fee of $1.5 million.

The DIP facility would mature in six months i.e., on November 23, 2023. 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 $0.75 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.