The US Bankruptcy Court gave an order to Sientra, Inc. to obtain DIP financing on an interim basis on February 14, 2024. As per the order, the debtor has been authorized to obtain a credit facility in the amount of $9 million out of total facility of $90 million($22.5 million in new money and $67.5 million Roll-Up Loans) from Deerfield Partners, L.P. with Alter Domus (US) LLC acting as the administrative agent. The DIP loan would carry an interest rate of SOFR plus 7% 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 4% p.a. and termination payment of 5.0% on DIP new money loans. The DIP facility would mature on July 11, 2024. 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 $1.2 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.

The final hearing is scheduled on March 12, 2024.