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Cano Health gets access to $50 million of new-money DIP facility
By Sarah Lizee
Olympia, Wash., Feb. 7 – Cano Health, Inc. received interim approval of a $150 million new-money debtor-in-possession facility, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
As a reminder, the company has entered into a restructuring support agreement with lenders holding about 86% of its secured revolving and term loan debt and 92% of its senior unsecured notes.
Cano received a commitment for the $150 million in new-money DIP financing from some of its existing secured lenders. The financing is expected to support the company’s operations throughout the restructuring process.
The senior secured super-priority delayed-draw term loan DIP facility is with Wilmington Savings Fund Society, FSB as administrative agent.
The company now has interim approval to access $50 million of the facility.
Borrowings under the DIP facility will bear interest at the rate of, at the election of Cano, SOFR plus 1,100 basis points.
If the financing is approved on a final basis, the DIP lenders will receive participation fees in an amount equal to 15% of the total commitments under the DIP facility, payable in shares of the reorganized equity of the company, provided that, to the extent that a sale closes, the participation fee will instead be payable in cash.
The consenting creditors will receive backstop fees in an amount equal to 7.5% of the total commitments under the DIP facility, payable in kind.
The facility is set to mature eight months from closing.
A final hearing is scheduled for March 7.
Cano Health is a Miami-based health care services provider. The company filed bankruptcy on Feb. 4 under Chapter 11 case number 24-10164.
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