Sorrento Therapeutics gets interim OK of $75 million DIP financing

By Sarah Lizee

Olympia, Wash., Feb. 21 – Sorrento Therapeutics, Inc. received interim approval of a $75 million debtor-in-possession facility from the U.S. Bankruptcy Court for the Southern District of Texas, according to a news release Tuesday evening.

The company was seeking interim access to $30 million of the facility, which is a non-amortizing super-priority senior secured term loan, according to a motion filed Sunday whit the court.

The lender is JMB Capital Partners Lending, LLC.

The facility is set to mature on July 31, or earlier following the occurrence of certain events.

Interest is 14% per annum, payable in cash monthly.

There is a 2.5% commitment fee and a 2.5% funding fee.

There is an exit fee payable to the DIP lender equal to the sum of 7% of the initial draw, and 7% of the amount of the DIP commitments less the amount of the initial draw.

The company is also seeking court approval to use cash collateral.

Sorrento said that, absent access to the DIP facility, the debtors will have no liquidity to continue operations and will be forced to liquidate.

The biopharmaceutical company is based in San Diego. The company filed bankruptcy on Feb. 13 under Chapter 11 case number 23-90085.

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