Pipeline Health gets interim access to $30 million of DIP financing

By Sarah Lizee

Olympia, Wash., Oct. 4 – Pipeline Health System, LLC received interim approval to access $30 million in new money under a proposed $110 million debtor-in-possession facility, according to an interim order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, Pipeline secured commitments for the superpriority senior secured DIP facility from Deerfield Private Design Fund IV, LP and DKLDO IV Trading Subsidiary LP as lenders.

Following a final order, the DIP facility will provide the full $40 million in new cash for the debtors and an about $70 million roll-up of term loans.

The DIP financing is set to mature in 35 days and bear interest at 10%.

A final hearing is scheduled for Oct. 24.

Pipeline Health System is an El Segundo, Calif.-based community-focused health care network. It filed bankruptcy on Oct. 2 under Chapter 11 case number 22-90291.

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