Trinity Regional Hospital gets final approval of DIP note facility

By Sarah Lizee

Olympia, Wash., Sept. 28 – Sunland Medical Foundation, which does business as Trinity Regional Hospital Sachse, received final approval of a $14 million new-money debtor-in-possession note facility, according to an order filed Thursday with the U.S. Bankruptcy Court for the Northern District of Texas.

The financing is with bondholders Principal Street High Income Municipal Fund, Principal Street Partners LLC, abrdn Short Duration High Yield Fund and Aberdeen Standard investments, Inc., as previously reported.

The DIP note facility will also include a $21.25 million rollup of the DIP lenders’ interests in the company’s 2020 bonds.

The DIP financing is set to mature on Feb. 29 and bear interest at 12% per annum.

The company also received final approval to access the cash collateral of Avoue Marchand Investments, Inc., Sandton Capital Solutions Master Fund V, LP and UMB Bank.

The Sachse, Tex.-based hospital filed bankruptcy on Aug. 29 under Chapter 11 case number 23-80000.

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