Christ Hospital obtains final court approval of $22 million DIP loan

By Caroline Salls

Pittsburgh, March 5 - Christ Hospital received final court approval of its $22 million of debtor-in-possession financing from HFG Healthco-4 LLC and Healthcare Finance Group, LLC, according to a Monday filing with the U.S. Bankruptcy Court for the District of New Jersey.

The DIP financing amount includes cash advances and other extensions of credit, as well as the amount of the hospital's pre-bankruptcy term debt.

If the total principal amount of the DIP facility plus the principal amount of the company's pre-bankruptcy term debt exceeds $21.5 million, any revolving loans and/or term loans will be made at the discretion of the lender parties.

The facility will mature on Aug. 6, subject to an extension to Nov. 6, 2012 if the hospital can prove as of July 31 that it has enough liquidity to fund its operations through that date.

Interest on the revolver will be Libor plus 775 basis points, with a 3% Libor floor, and interest on the term loan will be equal to the effective yield under the revolver.

Christ Hospital will pay a $235,000 exit fee.

Jersey City, N.J.-based Christ Hospital filed for bankruptcy on Feb. 6 under Chapter 11 case number 12-12906.

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