Loan & DebtJun 8, 2026, 05:06 PM
Inotiv Secures $65.5M DIP Financing Amid Chapter 11 Proceedings
AI Summary
Inotiv, Inc. has entered into a Superpriority Secured Debtor-In-Possession (DIP) Credit Agreement for $65.5 million on June 5, 2026. This financing follows the company's voluntary Chapter 11 bankruptcy filing on June 3, 2026. The DIP Facility comprises $25 million in new money term loans and a $40.52 million roll-up facility for existing prepetition bridge loans. Upon emergence from Chapter 11, all outstanding DIP obligations are expected to convert into a senior secured first lien exit term loan facility of up to $150 million.
Key Highlights
- Inotiv secured a $65.5 million Superpriority Secured Debtor-In-Possession (DIP) Credit Agreement.
- The DIP Facility includes $25 million in new money term loans, with $16 million immediately available.
- It also includes a $40.52 million roll-up facility for prepetition bridge loans.
- New Money Term Loans and Roll-Up Loans bear interest at Adjusted Term SOFR (2.5% floor) plus 11.5%, payable in kind.
- New Money Term Loans have a 4.5% upfront premium; Roll-up Loans have a 3.5% upfront premium.
- Outstanding DIP obligations will convert to an Exit Term Loan Facility of up to $150 million upon emergence from Chapter 11.
- The Exit Term Loan Facility will be subject to a 4.5% exit premium.
- The DIP Facility terminates on the earliest of August 4, 2026, or the effective date of a Chapter 11 plan.
Price Impact
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