Neuronetics Announces the Amendment of Credit Facility with Solar Capital Partners
December 08 2020 - 4:05PM
Neuronetics, Inc. (NASDAQ: STIM), a commercial stage medical
technology company focused on designing, developing and marketing
products that improve the quality of life for patients who suffer
from psychiatric disorders, today announced it has amended its term
loan agreement with its current lenders, investment affiliates
managed by Solar Capital Partners, LLC (Solar). The amendment
includes the resetting of certain revenue covenants, and the
dividing of the second tranche of the term loan, originally $15.0
million, into three separate $5.0 million tranches.
On March 2, 2020, Neuronetics entered into a credit facility
agreement with Solar which provided the Company with up to $50.0
million in term loans, available in two separate tranches, a Term A
Loan of up to $35.0 million, and a Term B Loan of up to $15.0
million. On March 2, 2020, the Company drew down all $35.0 million
available to it under the Term A Loan, and simultaneously prepaid
and terminated its previous $30.0 million credit agreement with
Oxford Finance, which was partially funded using the proceeds from
the initial tranche of the Solar facility.
The Term B Loan was originally set to allow for the Company to
borrow up to $15.0 million in a single tranche upon the achievement
of a specific trailing twelve-month net product revenue target. The
amendment permits the Company to borrow, at its election, up to
$15.0 million in three separate $5.0 million tranches (Term B, C,
and D Loans). The three tranches are available through June 20,
2021, December 20, 2021, and June 20, 2022, respectively, based on
the achievement of agreed upon trailing twelve-month net product
revenue targets for each tranche.
The agreement also reduced the trailing twelve-month net product
revenue requirement for the Term B Loan portion of the facility.
Subject to certain conditions, the Company has the ability to
extend the interest only period on the initial Term A Loan to 36
months from 24 months upon achieving the revenue targets associated
with the Term B Loan.
“We are very pleased to have amended our credit facility with
Solar. Given the disruption that COVID-19 caused earlier in the
year, we worked with Solar to update our facility to allow us
greater flexibility to pursue our growth strategy going forward,”
said Steve Furlong, Chief Financial Officer of Neuronetics. “Solar
has been a great partner to us, and we look forward to working
together as we seek to leverage the strength of our balance sheet
to drive the continued adoption and utilization of the NeuroStar®
Advanced Therapy system to bring relief to patients suffering from
psychiatric disorders.”
“We are very happy to amend the term of Neuronetics’ debt
facility to help support the Company’s continued commercial growth
for years to come,” said Anthony Storino, Head of Solar Capital’s
Life Science Lending platform. “We look forward to continuing our
relationship with the Neuronetics team and supporting their efforts
to help patients suffering from depression, which we believe is
critical for the mental health of Americans, both during and after
the COVID-19 pandemic.”
About Solar Capital PartnersSolar Capital
Partners, LLC (“Solar Capital Partners”) is an SEC-registered
investment adviser that primarily invests directly in leveraged,
U.S. middle market companies in the form of cash flow and
asset-based senior secured investments. Solar Capital Partners
manages over $7 billion of investable capital, including serving as
the investment adviser to two publicly-traded business development
companies, Solar Capital Ltd. and Solar Senior Capital Ltd. Solar
Capital Partners’ life science lending business provides financing
solutions for later-stage bio-pharma, medical device, healthcare IT
and healthcare services companies, both venture-backed private and
public, and from pre-revenue clinical to early commercial stage.
For more information, please
visit https://www.solarcapitalpartnersllc.com/Financial-Solutions/Life-Science-Lending
About NeuroneticsNeuronetics, Inc. is a
commercial-stage medical technology company focused on designing,
developing, and marketing products that improve the quality of life
for patients who suffer from psychiatric disorders. Its commercial
product, the NeuroStar® Advanced Therapy System, is a non-invasive
and non-systemic office-based treatment that uses transcranial
magnetic stimulation, or TMS, to create a pulsed, MRI-strength
magnetic field that induces electrical currents designed to
stimulate specific areas of the brain associated with mood. The
system is cleared by the United States Food and Drug
Administration, or FDA, for the treatment of major depressive
disorder in adult patients who have failed to achieve satisfactory
improvement from prior antidepressant medication in the current
episode. NeuroStar is also available in other parts of the world,
including Japan, where it is listed under Japan’s national
health insurance. Additional information can be found
at www.neuronetics.com.
“Safe harbor” statement under the Private Securities
Litigation Reform Act of 1995:Statements in the press
release regarding Neuronetics, Inc. (the “Company”) that are not
historical facts constitute “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may be identified by terms such as
“outlook,” “potential,” “believe,” “expect,” “plan,” “anticipate,”
“predict,” “may,” “will,” “could,” “would” and “should” as well as
the negative of these terms and similar expressions. These
statements are subject to significant risks and uncertainties and
actual results could differ materially from those projected. The
Company cautions investors not to place undue reliance on the
forward-looking statements contained in this release. These risks
and uncertainties include, without limitation, risks and
uncertainties related to: the impact of COVID-19 on general
political and economic conditions, including as a result of efforts
by governmental authorities to mitigate COVID-19, such as travel
bans, shelter in place orders and third-party business closures and
the related impact on resource allocations, manufacturing and
supply chains and patient access to commercial products; the
Company’s ability to execute its business continuity, operational
and budget plans in light of the COVID-19 outbreak; the Company’s
ability to achieve or sustain profitable operations due to its
history of losses; the Company’s reliance on the sale and usage of
its NeuroStar Advanced Therapy System to generate revenues; the
scale and efficacy of the Company’s salesforce; availability of
coverage and reimbursement from third-party payors for treatments
using the Company’s products; physician and patient demand for
treatments using the Company’s products; developments in respect of
competing technologies and therapies for the indications that the
Company’s products treat; product defects; the Company’s ability to
obtain and maintain intellectual property protection for its
technology; developments in clinical trials or regulatory review of
NeuroStar Advanced Therapy System for additional indications; and
developments in regulation in the United States and other
applicable jurisdictions. For a discussion of these and other
related risks, please refer to the Company’s recent SEC filings
which are available on the SEC’s website at www.sec.gov. These
forward-looking statements are based on the Company's expectations
and assumptions as of the date of this press release. Except as
required by law, the Company undertakes no duty or obligation to
update any forward-looking statements contained in this press
release as a result of new information, future events or changes in
the Company's expectations.
Investor Contact:Mark R. KlausnerWestwicke
Partners443-213-0501ir@neuronetics.com
Media Contact:Chelsey MankoVault
Communications610-455-2778cmanko@vaultcommunications.com
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