In the first two months of 2026, creeping roll-ups appeared across a growing number of DIP facilities, with four facilities using this feature compared to only one in 4Q25. Even as this trend gains traction, the DIP financing market remained bifurcated between smaller, new-money-only facilities and larger, more complex transactions featuring significant roll-ups, as in 2025.

Prepetition lenders also remained the dominant source of DIP financing, providing 13 of the 16 facilities analyzed by Debtwire between 1 January and 28 February 2026. Only three transactions — those for Inspired Healthcare Capital Holdings, Vanderbilt Minerals, and Hawthorne Race Course — involved third-party lenders.

The most expensive facilities, including Saks Global, Pretium Packaging, and STG Logistics, were defined by multi-tranche structures, PIK-based interest, and stacked fees that drove effective borrowing costs higher.

Most expensive DIP transactions:

Saks Global sought financing through three facilities: two term loans (the SGUS term loan and the OpCo term loan) and one revolver (the ABL revolver). SGUS LLC is the borrower under the SGUS term loan, while Saks Global Enterprises LLC is the borrower under both the OpCo term loan and the ABL revolver. The SGUS term loan includes three tranches, one of which provides USD 1bn in new money that is on-lent to Saks Global through the OpCo term loan. Both term loans rank among the most expensive facilities sought since 1 January.

The SGUS term loan is the most expensive facility sought so far this year. The multi-tranche DIP totals USD 2.56bn and is provided by the ad hoc group of prepetition noteholders to SGUS LLC. Its three tranches are: (1) USD 1bn in new money loans bearing interest at Term SOFR + 11% PIK; (2) USD 808.1m to refinance prepetition SGUS notes, bearing interest at Term SOFR + 12.5% PIK; and (3) USD 751m to fund participation in prepetition OpCo notes, bearing interest at Term SOFR + 10% PIK.

The new-money SGUS loans carry a 2% PIK commitment fee payable on USD 400m upon entry of the interim order, USD 300m upon entry of the final order, and up to USD 300m drawn thereafter. In addition, the SGUS term loan includes two cash fees: an 8% structuring premium on the total backstop commitment and a 10% backstop premium on each lender’s individual commitment. Because the new-money loans are on-lent through the OpCo term loan, the structure effectively results in two layers of interest and fees.

The OpCo USD 1.75bn term loan is also highly expensive. It includes USD 1bn in new-money loans — funded through the SGUS facility and on-lent to the OpCo borrowers — and approximately USD 752.5m in roll-up loans refinancing prepetition Saks Global debt. The facility bears interest at SOFR + 10% PIK and includes a 6% PIK structuring premium payable on total commitments (excluding roll-up loans and subsequent-draw commitments), as well as a further 2% PIK commitment premium structured on the same basis. It also carries an 8% backstop premium payable on each backstop party’s commitment. Given its size and PIK-based economics, the facility materially increases the debtors’ postpetition obligations over time.

Pretium Packaging sought a USD 533.5m DIP term loan bearing interest at SOFR + 5.25%. The primary costs arise from significant equity-based fees: 1) a participation premium equal to 10% of total commitments, satisfied through the issuance of 23.4% of new equity (earned upon entry of the interim order); and 2) a backstop premium equal to 11.5% of backstop commitments, paid in 26.9% of new equity (earned upon execution of the backstop commitment letter). The facility also includes customary fronting fees and the payment of fees and out-of-pocket expenses to the DIP term loan agent.

STG Logistics sought a USD 293.75m DIP term loan with a sizeable roll-up (48.9%), while carrying 8% PIK interest and multiple large fees, all PIK, including a 5% commitment fee, a 5.5% backstop fee, and a 5% exit fee.

Creeping roll-ups

Saks Global, in addition to its term loan facilities, obtained a USD 1.5bn DIP ABL revolver. Certain prepetition ABL obligations — including non-revolving debt, revolving loans, and approximately USD 56.6m in letters of credit — were refinanced through a dollar-for-dollar creeping roll-up. Upon entry of the final order, any remaining prepetition ABL obligations would be automatically refinanced.

Similar to Saks, Pretium Packaging also sought a DIP ABL revolver with a creeping roll-up in addition to a highly expensive term loan. The facility has a total size of USD 100m and is tied to a roll-up of all prepetition ABL obligations. The structure implements a creeping roll-up at the interim stage, followed by a full cashless roll-up upon entry of the final order. Up to USD 59.4m of the commitment effectively refinances existing ABL debt (59.4%), leaving the remainder available as liquidity.

Axip Energy Services obtained a USD 104.83m DIP term loan consisting of USD 25.15m of new money, a USD 66.15m creeping roll-up of prepetition term debt, and USD 13.16m of refinancing (75.66%).

New Pacific Airlines sought a USD 3.23m DIP term loan incorporating a creeping roll-up in which the commitment equals the amount eligible for conversion (100% roll-up). Because each advance converts an equal amount of prepetition debt into DIP obligations, the financing effectively combines new liquidity and rolled-up debt within the same commitment.

New money only DIP facilities: The following facilities were pure new money with no roll up component.

Carbon Health Technologies obtained a USD 19.5m DIP term loan from prepetition lenders. The facility carries 11.5% cash interest with a 3% default premium and has no fees.

Tonopah Solar Energy (2026) obtained a USD 10m DIP term loan from prepetition lenders. The facility accrues interest at 4.5% PIK with a 2% default premium and has no fees.

Inspired Healthcare Capital Holdings seeks a final order approving a USD 35m third-party DIP term loan. The loan carries an interest rate of 11.5% and includes a 1.25% PIK commitment fee, a 0.95% exit fee, a 2% break-up fee if the transaction fails, and a 0.5% extension fee.

Vanderbilt Minerals seeks a final order approving a USD 15m third-party DIP term loan. The facility accrues interest at 7.5% PIK and includes a PIK commitment fee and a 1% exit fee.

Hawthorne Race Course seeks final approval of a USD 16m third-party DIP term loan. The facility carries a 13% interest rate, increasing to 22% upon default. The only definitive fee is an exit fee totaling USD 320,000, of which USD 60,000 was paid prepetition, with the remaining balance due upon repayment of the DIP loan. If the DIP lender is replaced, the debtors would owe an additional USD 500,000 break-up fee.

Pending 4Q DIP transactions

Three DIP facilities from last year remained pending final approval as of 1 February 2026: Oroville Hospital, Conscious Content Media, and United Site Services. Oroville Hospital received final approval on 24 February, while United Site Services remained pending until just one month prior to confirmation of the Chapter 11 plan. Conscious Content Media received second interim approval on 2 March.

Prior to joining Debtwire, Stephanie Bentley served as a judicial clerk for a judge with the United States Court of Appeals for the Fifth Circuit. Stephanie is a former practicing restructuring and financial litigation attorney, during which time she primarily represented Chapter 11 trustees, debtors-in-possession, financial institutions (as secured creditors and defendants in adversary proceedings), and unsecured creditors. 

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[1] Base rate is equal to the highest of certain benchmark rates including those ike the federal funds rate + 0.5%, a SOFR-based rate + 1%, or the prime rate, and adding 2.5%.