Sound Shore Medical Center gets OK for interim use of DIP financing

By Lisa Kerner

Charlotte, N.C., May 31 - Sound Shore Medical Center of Westchester was approved to use its debtor-in-possession financing on an interim basis by the U.S. Bankruptcy Court for the Southern District of New York on Friday, according to an attorney familiar with the case.

As previously reported, the medical center obtained a commitment for $33 million of DIP financing from MidCap Financial, LLC, consisting of a $23 million revolving credit facility and a $10 million term loan.

Interest on the revolver will be Libor plus 750 basis points with a 250 bps floor. Interest on the term loan will be Libor plus 650 bps with a 250 bps floor.

The DIP facility will mature on the earliest of 12 months from closing, the asset sale effective date and occurrence of an event of default.

Sound Shore, a New Rochelle, N.Y., medical center, filed Chapter 11 bankruptcy on May 29. Its Chapter 11 case number is 13-22840.

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