The US Bankruptcy Court gave an order to Pennsylvania Real Estate Investment Trust to obtain DIP financing on a final basis on January 5, 2024. As per the order, the debtor has been authorized to obtain a postpetition senior secured superpriority credit facility in the amount of $60 million from DIP Lenders with Wilmington Savings Fund Society, FSB acting as the administrative agent. The DIP loan would carry an interest rate of SOFR plus 7% p.a., with a SOFR floor of 2% 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 Draw Payment of 2.50%, Roll Premium of 1% and Backstop Premium of 1.75%. The DIP facility would mature either on the scheduled maturity date 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 $2 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.