aibioInotiv enters $65.5 million DIP credit agreement after Chapter 11 filing
Inotiv's $65.5 million debtor-in-possession facility includes $25,000,000 of new money and rolls up $40,521,753.47 of prepetition bridge loans into superpriority term loans. Both tranches pay interest in kind at Adjusted Term SOFR plus 11.5%.
Key facts
- News type
- Debt Financing
- Primary source
- Inotiv, Inc. 8-K (2026-06-08)
The filing and the facility
Inotiv, Inc. (Nasdaq: NOTV), based in West Lafayette, Indiana, and certain subsidiaries filed voluntary Chapter 11 petitions on June 3, 2026 in the U.S. Bankruptcy Court for the Southern District of Texas. The filings use a joint prepackaged plan of reorganization. On June 5, 2026 the company, its subsidiary guarantors, the DIP lenders and Acquiom Agency Services LLC, as administrative agent and collateral agent, signed a Superpriority Secured Debtor-In-Possession Credit Agreement for $65.5 million.
The 8-K reports final terms that supersede those anticipated in an earlier 8-K filed June 3.
New money and the roll-up
The new money term loans total $25,000,000. Of that, $16,000,000 is available on the closing date and $9,000,000 as delayed draw term loans. The roll-up exchanges prepetition bridge facility delayed draw term loans held by the DIP lenders on June 3, 2026 for $40,521,753.47 in aggregate principal of superpriority term loans, on a cashless basis. The 8-K does not give the size, rate or maturity of those bridge loans.
Pricing and premiums
Both tranches bear interest at Adjusted Term SOFR, with a floor of 2.5%, plus 11.5%, payable in kind. The new money loans carry an upfront premium of 4.5%, and the roll-up loans carry 3.5%. Both premiums are paid in kind and added to the balance.
The exit facility
The loan parties expect to enter a senior secured first-lien exit term loan facility of up to $150 million after emerging from Chapter 11, including paid-in-kind interest, fees, original issue discount and premiums. All DIP obligations convert dollar for dollar into exit term loans, which carry an exit premium of 4.5%, paid in kind.
The exit facility depends on emergence, and the 8-K gives no confirmation timetable.
Equity and listing
The company says holders of existing equity could lose their entire investment, because the plan contemplates cancelling all existing equity interests without any distribution to equity holders. On June 4, 2026 Nasdaq notified the company that it had decided to delist the common shares because of the Chapter 11 filing. The company does not intend to appeal. Trading is to be suspended at the opening of business on June 11, 2026, and a Form 25-NSE will be filed to remove the shares from listing and registration on Nasdaq.
Termination and deadlines
The DIP facility ends on the earliest of several events. One is August 4, 2026, which the requisite lenders may extend by 30 days with written consent. Others are acceleration after a default, a plan's effective date, and a sale of substantially all assets under Section 363 of the Bankruptcy Code.
The last trigger is 45 calendar days after the petition date, if the final order approving the DIP has not been entered by then, though the requisite lenders may accept a later date. The 8-K does not say when a final order is expected.
Covenants and use of proceeds
The DIP requires average liquidity of at least $5,000,000 over the five business days ending on the last business day of each week. It also sets variance tests against the company's budget. Cumulative operating receipts may not fall short of budget by more than 30%, disbursements may not exceed budget by more than 20%, and non-recurring costs may not exceed budget by more than 5% on a line-item basis.
Proceeds may pay the costs of the Chapter 11 cases, fund working capital as the court authorizes, and cover a carve-out for professional and U.S. Trustee fees. The obligations are secured by liens on substantially all assets of the loan parties.
Who is named
The DIP lenders are described only as the lenders party to the agreement. Acquiom Agency Services LLC is the administrative and collateral agent. The 8-K names no placement agent, financial advisor or counsel. Kroll Restructuring Administration LLC is the claims and noticing agent for the cases. Beth Taylor, chief financial officer and executive vice president, signed the report on June 8, 2026.
What the 8-K does not show
The 8-K contains no balance sheet, cash figure or income statement for Inotiv, so the size of the DIP against the company's needs cannot be judged from it.