ENDOLOGIX, INC. (NASDAQ:ELGX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
Restructuring Support Agreement
On July 5, 2020, the Debtors entered into a Restructuring Support Agreement (the Restructuring Support Agreement) with the lenders under that certain Credit Agreement, dated as of August 9, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the Credit Agreement), with the Lenders party thereto from time to time, and Deerfield ELGX Revolver, LLC, as agent for itself (the ABL Agent) (collectively, the ABL Creditors) and Amended and Restated Facility Agreement, dated as of August 9, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the Existing Facility Agreement), with the Lenders party thereto from time to time, and Deerfield Private Design Fund I.V., L.P. as agent for itself (together with the ABL Agent, Deerfield) (collectively with the ABL Creditors, the Supporting Creditors). Among other things, the Restructuring Support Agreement provides that the Supporting Creditors will support the Debtors restructuring efforts as set forth in, and subject to the terms and conditions of, the Restructuring Support Agreement. The Restructuring Support Agreement also provides that the Supporting Creditors will consent to the Debtors use of cash collateral to the proposed form of order governing the Debtors use of cash collateral, under which the Supporting Creditors will receive administrative and priority status for adequate protection claims equal in amount to the aggregate diminution in the value of the Supporting Creditors prepetition security interests in the Debtors collateral. In exchange, the Debtors have agreed to seek approval of the Plan and complete their restructuring efforts subject to the terms, conditions, and milestones contained in the Restructuring Support Agreement and otherwise comply with the terms and requirements set forth in the Restructuring Support Agreement. The Restructuring Support Agreement is subject to a number of conditions, including, among others, material compliance with the obligations set forth in the Restructuring Support Agreement.
DIP Credit Agreement
In connection with the Chapter 11 Case, on July 5, 2020, the Bankruptcy Court entered an interim order (the Interim Order) approving the Companys debtor-in-possession financing (DIP Financing) to terms set forth in a secured priming, delayed draw term loan debtor-in-possession credit agreement, dated as of July 8, 2020 (the DIP Credit Agreement).