We are advising Highbridge Capital in connection with the restructuring

Davis Polk is advising Highbridge Capital Management, LLC and its affiliates, the sole lender under Invacare Corporation’s $104.5 million secured term loan credit facility and the sole holder of $41.5 million of 5.68% convertible senior secured notes due 2026 issued by Invacare, in connection with Invacare’s chapter 11 restructuring. On January 31, 2023, Invacare filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Southern District of Texas, after entering into a restructuring support agreement (RSA) dated January 31, 2023, with Highbridge, certain holders of 5.00% convertible senior unsecured notes due 2024 and 4.25% convertible senior unsecured notes due 2026, and certain lenders under Invacare’s senior secured asset-based revolving credit facility. On February 2, 2021, Invacare obtained all of the “first day” relief it sought before the bankruptcy court.

Under the terms of the RSA, Highbridge will provide Invacare with a $70 million debtor-in-possession term loan facility, including new money funding of $35 million and a $35 million roll-up of prepetition loans. Highbridge will also provide $126.5 million of exit financing, in the form of secured term loans and secured convertible notes, under the RSA.

Headquartered in Elyria, Ohio, Invacare is a global leader in the manufacture and distribution of innovative home and long-term care medical products that promote recovery and active lifestyles. Invacare employs approximately 3,400 associates and markets its products in more than 100 countries around the world.

The Davis Polk restructuring team includes partner Damian S. Schaible, associates Jonah A. Peppiatt, Jarret Erickson, Eric Hwang and Cole Hanson. The finance team includes partner Kenneth J. Steinberg and associates Sarah Hylton, Theodore N. Batis, Pablo Solorzano, James Moore and Matthew Vallade. Partner Ethan R. Goldman is providing tax advice. All members of the Davis Polk team are based in the New York office.