GenesisCare gets final approval of DIP financing, bid procedures

By Sarah Lizee

Olympia, Wash., July 19 – GenesisCare Pty Ltd. got final approval of a debtor-in-possession financing package and the bid procedures for its assets, according to orders filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, GenesisCare has secured commitments for a $200 million new-money DIP facility from existing term lenders. The facility will also include a $600 million rollup of prepetition term loan debt.

Kroll Agency Services Ltd. is the DIP administrative agent.

The new money DIP term loans will bear interest at SOFR, subject to a 1% floor, plus 1,000 basis points per annum, with SOFR plus 150 bps per annum payable in cash and the remaining portion payable in kind.

The roll-up loans will bear interest at the per annum non-default rate under the prepetition agreements, also with 150 bps payable in cash and the remainder payable in kind.

There is a 3% closing fee, a 3% exit fee and a 0.75% ticking fee on new money.

Bid procedures

When it filed bankruptcy, the company launched a marketing process for the U.S. arm of its business, comprised of a large network of physician-led cancer treatment centers.

The U.S. business has faced strategic and operational challenges that have resulted in declining revenue and, as of last year, unprofitability.

GenesisCare said the U.S. business is now poised for an operational turnaround and return to profitability due in large part to the efforts of its new management team, its commitment to identifying and assessing areas for potential improvement, and the development of a detailed turnaround plan to increase revenues and reduce costs.

The company said that while its operations in the United Kingdom, Australia and Spain have historically been sufficient to fund the U.S. arm’s operations, the group currently lacks the wherewithal to invest in a turnaround.

As such, the debtors sought to formalize bid procedures designed to maximize value for stakeholders.

Under the bid procedures, the bid deadline is 6 p.m. ET on Sept. 22, an auction is scheduled for Oct. 4, and a sale hearing will take place on Oct. 11.

The company is proposing an outside date of Nov. 22.

GenesisCare is a cancer care provider with headquarters in Sydney. The company filed bankruptcy on June 1 under Chapter 11 case number 23-90614.

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