The US Bankruptcy Court gave an order to ProSomnus, Inc. to obtain DIP financing on an interim basis on May 9, 2024. As per the order, the debtor has been authorized to obtain a multi-draw term loan facility in the amount of $2.5 million, the Bridge Notes in the aggregate principal amount of $4 million, and the Senior Notes in the aggregate principal amount of $2 million from CrossingBridge Low Duration High Yield Fund, Destinations Low Duration Fixed Income Fund, Intrepid Income Fund, Cohanzick Absolute Return Master Fund, Ltd., Leaffilter North Holdings Inc., Destinations Global Fixed Income Opportunities Fund RiverPark Strategic Income Fund, Cedarview Opportunities Master Fund, LP, SMC Holdings II, LP, and Cetus Capital VI, L.P. with Wilmington Savings Fund Society, FSB acting as the administrative agent. The DIP loan would either carry an interest rate of Prime Rate plus 9% p.a., along with an additional 2% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries an exit fee of 10% p.a. The DIP facility would mature either on November 7, 2024, or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier.