Nogin gets interim approval to access $19.23 million of DIP facility

By Sarah Lizee

Olympia, Wash., Dec. 8 – Nogin, Inc. received interim approval to access $19.23 million of a proposed $24.7 million debtor-in-possession facility, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, after entering into a restructuring support agreement, the debtors, B. Riley Principal Investments, LLC as plan sponsor, and an informal convertible noteholder group negotiated a senior secured super-priority debtor-in-possession credit facility in a total principal amount of up to $24.7 million, inclusive of a $10.2 million rollup of bridge loans.

BRF Finance Co., LLC is the DIP agent.

Interest is 15% per annum, with default interest being an additional 2%.

The facility is set to mature on Jan. 2.

The DIP financing sets out some case milestones, including filing a Chapter 11 plan within three days, receiving approval of a disclosure statement by Jan. 18, and the plan becoming effective by March 13.

The company has also received interim approval to access cash collateral.

Nogin said access to the cash collateral and DIP financing will provide necessary liquidity to conduct a value-maximizing process in the Chapter 11 cases, whether by sale or under a Chapter 11 plan.

A final hearing on the DIP financing is scheduled for Jan. 11.

The New York-based online retail company filed bankruptcy on Dec. 5 under Chapter 11 case number 23-11945.

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