Vice Group gets final approval of $60 million DIP financing package

By Sarah Lizee

Olympia, Wash., June 14 – Vice Group Holding Inc. received final approval of a $60 million debtor-in-possession financing package, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the financing consists of $10 million in new money from the lender consortium, including Fortress Investment Group and Soros Fund Management and Monroe Capital, and a $50 million rollup of prepetition senior secured term loans.

The DIP facility has a six-month maturity, subject to earlier termination if certain events occur.

Interest is SOFR plus 1,200 basis points, subject to a 3% SOFR floor. With respect to the new money, SOFR interest will be paid in cash and the additional 1,200 bps will be paid in kind. All interest on the rollup will be paid in kind.

There is a 10% commitment premium PIK fee, and a 6% exit premium PIK fee, unless the lenders acquire the assets of the debtors through a credit bid.

The company also received final approval to use more than $20 million of cash that constitutes the cash collateral of the lenders.

Vice said it anticipates that the financing, as well as the cash generated from ongoing operations, will be more than sufficient to fund its business throughout its sale process.

Vice is a global multi-platform media company with headquarters in Brooklyn, N.Y. The company filed bankruptcy on May 15 under Chapter 11 case number 23-10767.

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