The US Bankruptcy Court gave an order to Clovis Oncology, Inc. to obtain DIP financing on final basis on January 24, 2023. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $75 million from DIP lenders with Top IV Talents, LLC acting as the administrative agent. The DIP loan would carry an interest rate of 8% p.a., along with an additional 2% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a commitment fee of 5% p.a., 1.50% upfront fee and 3.00% exit fee on new money loans. The DIP facility would mature either in 6 months following the Closing Date or on the date of termination of the New Money DIP Commitments or on dismissal of the Chapter 11 Cases or conversion of the Chapter 11 Cases into cases under chapter 7 of the Bankruptcy Code or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, 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 $0.05 million towards unpaid trustee fees and $1 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 to fund the debtors' working capital needs, including to fund the costs of the administration of the Chapter 11 Cases and to pay professional fees and expenses.