Teligent gets interim access to $6 million of DIP financing package

By Sarah Lizee

Olympia, Wash., Oct. 15 – Teligent, Inc. received interim approval to access $6 million of a $12 million debtor-in-possession financing package from its senior secured lenders, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The DIP package consists of a $6 million senior revolving credit facility and a $6 million junior term loan facility, as previously reported. Friday’s interim order gave the company access to $3 million of each facility.

A roll-up of about $34.88 million of pre-petition term loan and revolving credit facility debt will be included in the DIP financing following a final order.

ACF Finco I LP will serve as administrative and collateral agent for the senior DIP facilities, and Ares Capital Corp. will serve as term loan agent for the junior DIP facilities.

The facility will mature on Jan. 31 and bear interest at Libor plus 650 basis points for senior loans and Libor plus 850 bps for junior loans.

There is a 1% exit fee and a 0.5% unused line fee.

The DIP financing will provide the company with the necessary liquidity to operate in the normal course and cover administrative expenses throughout the Chapter 11 process as it pursues a sale process.

Teligent is a Buena, N.J.-based specialty generic pharmaceutical company. The company filed bankruptcy on Oct. 14 under Chapter 11 case number 21-11332.

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