Virgin Orbit gets approval to use $23.15 million of DIP financing

By Sarah Lizee

Olympia, Wash., April 5 – Virgin Orbit Holdings, Inc. received interim approval to access $23.15 million of a proposed $74.1 million in debtor-in-possession facility, according to an order filed Wednesday with the U.S. Bankruptcy Court in the District of Delaware.

As previously reported, the financing is from parent company Virgin Investments Ltd.

The facility consists of a $31.6 million new money super-priority senior secured term loan and a $42.5 million rollup of prepetition convertible notes.

Following the interim order, the company can access $12.25 million of the new money loans and $10.9 million of the rollup.

The company originally sought interim access to $16.45 million of the new money with the $10.9 million rollup.

Interest is 12% per annum, payable in cash, for new money loans and interim rollup loans, and 18% per annum, payable in kind, for final rollup loans. In each case, interest would rise by 4% in the event of a default.

The DIP financing is set to mature on July 8.

The proceeds are expected to provide the company with enough liquidity to continue operating as it continues the marketing process that started prior to the filing.

Long Beach, Calif.-based Virgin Orbit operates space launch systems. The company filed bankruptcy on April 4 under Chapter 11 case number 23-10405.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.