Pipeline Health gets final approval of $110 million DIP facility

By Sarah Lizee

Olympia, Wash., Nov. 16 – Pipeline Health System, LLC received approval of a $110 million debtor-in-possession facility, according to a final order filed Wednesday 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 provides for $40 million in new cash for the debtors and an about $70 million roll-up of term loans.

The DIP financing bears interest at 10%.

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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