The US Bankruptcy Court gave an order to iMedia Brands, Inc. to obtain DIP financing on a final basis on August 15, 2023. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $15 million and a revolving credit facility in the amount of $19.95 million from Siena Lending Group LLC, Crystal Financial SPV LLC, Crystal Financial LLC d/b/a SLR Credit Solutions, North Mill Capital LLC d/b/a SLR Business Credit, RNN-TV Licensing Co. LLC with Siena Lending Group LLC acting as the administrative agent.

Revolving loan facility is provided by Siena Lending Group LLC in the amount of $12.47 million, Crystal Financial LLC in the amount of $3.74 million and North Mill Capital LLC in the amount of $3.74 million. The term loan facility is provided by Siena Lending Group LLC in the amount of $4.69 million, Crystal Financial LLC in the amount of $1.41 million, North Mill Capital LLC in the amount of $1.41 million and RNN-TV Licensing Co. LLC in the amount of $7.50 million.

The DIP loans would carry an interest rate of SOFR plus 10% 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 an unused line fee of 0.5% p.a., closing fee of $0.3 million. The DIP facility would mature either on APA closing date or August 6, 2023 or the date of the conversion of the case to a case under chapter 7 or the date of the dismissal of the case or July 24, 2023 if the final order has not been entered or has not become effective as of such date, 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 $0.25 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. Final hearing is scheduled on July 24, 2023.