Neuronetics Announces the Closing of up to $90 Million Senior Secured Credit Facility with Perceptive Advisors
Neuronetics (NASDAQ: STIM) has secured a $90 million senior secured credit facility with Perceptive Advisors. The company received an initial $50 million tranche at closing, part of which will be used to repay its existing SLR Capital term loan. Two additional tranches of $15 million and $25 million are available upon meeting certain milestones by December 31, 2025, and June 30, 2026, respectively.
The 5-year loan will support Neuronetics' initiatives, including commercial expansion, clinical indication development, and driving adoption of its NeuroStar Advanced Therapy for Mental Health. This new facility aims to strengthen the company's balance sheet and provide financial flexibility for its growth strategies in the neurohealth disorder treatment market.
Neuronetics (NASDAQ: STIM) ha ottenuto una linea di credito garantita senior da 90 milioni di dollari con Perceptive Advisors. L'azienda ha ricevuto un primo tranche di 50 milioni di dollari al momento della chiusura, parte del quale sarà utilizzato per rimborsare il prestito term loan esistente con SLR Capital. Sono disponibili due ulteriori tranche di 15 milioni e 25 milioni al raggiungimento di determinati obiettivi entro il 31 dicembre 2025 e il 30 giugno 2026, rispettivamente.
Il prestito di 5 anni supporterà le iniziative di Neuronetics, inclusi l'espansione commerciale, lo sviluppo delle indicazioni cliniche e la promozione dell'adozione della sua Terapia Avanzata NeuroStar per la salute mentale. Questa nuova linea di credito mira a rafforzare il bilancio dell'azienda e fornire flessibilità finanziaria per le sue strategie di crescita nel mercato del trattamento dei disturbi neurologici.
Neuronetics (NASDAQ: STIM) ha asegurado un crédito garantizado senior de 90 millones de dólares con Perceptive Advisors. La compañía recibió un primer tramo de 50 millones de dólares al cierre, parte del cual se utilizará para pagar su préstamo a plazo existente con SLR Capital. Dos tramos adicionales de 15 millones y 25 millones están disponibles al cumplir ciertos hitos para el 31 de diciembre de 2025 y el 30 de junio de 2026, respectivamente.
El préstamo de 5 años apoyará las iniciativas de Neuronetics, incluyendo la expansión comercial, el desarrollo de indicaciones clínicas y la promoción de la adopción de su Terapia Avanzada NeuroStar para la salud mental. Esta nueva línea de crédito tiene como objetivo fortalecer el balance de la empresa y proporcionar flexibilidad financiera para sus estrategias de crecimiento en el mercado de tratamiento de trastornos neuropsiquiátricos.
Neuronetics (NASDAQ: STIM)는 Perceptive Advisors와 함께 9천만 달러의 선순위 담보 신용 한도를 확보했습니다. 회사는 종료 시점에서 5천만 달러의 첫 번째 분할금을 수령했으며, 이 중 일부는 기존의 SLR Capital의 기간 대출을 상환하는 데 사용될 것입니다. 2025년 12월 31일과 2026년 6월 30일까지 특정 마일스톤을 충족할 경우 추가로 1천5백만 달러 및 2천5백만 달러의 분할금을 이용할 수 있습니다.
5년 간의 대출은 Neuronetics의 상업적 확장, 임상 적응증 개발, 그리고 자사의 정신 건강을 위한 NeuroStar Advanced Therapy의 채택 촉진 등 다양한 이니셔티브를 지원할 것입니다. 이 새로운 신용 한도는 회사의 재무 상태를 강화하고, 신경 건강 장애 치료 시장에서 성장 전략을 위한 재정적 유연성을 제공하는 것을 목표로 하고 있습니다.
Neuronetics (NASDAQ: STIM) a sécurisé une ligne de crédit senior garantie de 90 millions de dollars avec Perceptive Advisors. La société a reçu un premier tranche de 50 millions de dollars lors de la clôture, dont une partie sera utilisée pour rembourser son prêt à terme existant auprès de SLR Capital. Deux tranches supplémentaires de 15 millions et 25 millions seront disponibles sous certaines conditions d'ici le 31 décembre 2025 et le 30 juin 2026, respectivement.
Le prêt de 5 ans soutiendra les initiatives de Neuronetics, y compris l'expansion commerciale, le développement d'indications cliniques et la promotion de l'adoption de sa thérapie avancée NeuroStar pour la santé mentale. Cette nouvelle ligne de crédit vise à renforcer le bilan de l'entreprise et à offrir une flexibilité financière pour ses stratégies de croissance sur le marché du traitement des troubles neuropsychiatriques.
Neuronetics (NASDAQ: STIM) hat eine sichern und senioren Kreditlinie in Höhe von 90 Millionen USD mit Perceptive Advisors gesichert. Das Unternehmen erhielt einen ersten Tranche von 50 Millionen USD bei Abschluss, von dem ein Teil zur Rückzahlung seines bestehenden Terminkredits bei SLR Capital verwendet wird. Zwei weitere Tranchen in Höhe von 15 Millionen und 25 Millionen stehen zur Verfügung, wenn bis zum 31. Dezember 2025 und 30. Juni 2026 bestimmte Meilensteine erreicht werden.
Das 5-jährige Darlehen wird die Initiativen von Neuronetics unterstützen, einschließlich der kommerziellen Erweiterung, der Entwicklung klinischer Indikationen und der Förderung der Akzeptanz seiner NeuroStar Advanced Therapy für psychische Gesundheit. Diese neue Kreditlinie soll die Bilanz des Unternehmens stärken und finanzielle Flexibilität für seine Wachstumsstrategien im Markt für die Behandlung neuropsychiatrischer Störungen bieten.
- Secured up to $90 million in credit facility, strengthening the company's financial position
- Immediate access to $50 million, with potential for additional $40 million based on milestones
- 5-year loan term provides long-term financial stability
- Funding allows for investment in commercial initiatives and clinical indication expansion
- New debt obligation may increase financial burden and interest expenses
- Repayment of existing SLR Capital term loan with new debt
Insights
Neuronetics' new
- Initial
$50 million tranche available immediately - Second
$15 million tranche tied to milestone achievements - Third
$25 million tranche available upon request
This tiered approach allows Neuronetics to access capital as needed, potentially reducing interest expenses while maintaining financial flexibility. The 5-year term provides a substantial runway for the company to execute its strategic initiatives without immediate refinancing pressure.
The refinancing of the existing SLR Capital term loan with part of the initial tranche is a prudent move, likely aimed at optimizing the company's debt structure and potentially reducing interest costs. However, investors should be cautious about the overall increase in debt load and monitor the company's ability to generate sufficient cash flow to service this new facility.
The involvement of Perceptive Advisors, a well-known healthcare-focused investment firm, lends credibility to Neuronetics' business model and growth prospects. This could have positive implications for investor sentiment and potentially ease future capital raising efforts.
While the additional capital provides a buffer for operations and growth initiatives, it's important for investors to closely watch Neuronetics' execution, particularly in expanding clinical indications and driving adoption of its NeuroStar therapy. The company's ability to meet the milestones for accessing additional tranches will be a key indicator of its progress and financial health.
The substantial credit facility secured by Neuronetics underscores a significant vote of confidence in the company's neurohealth technology, particularly its NeuroStar Advanced Therapy for Mental Health. This influx of capital could accelerate several critical areas of development:
- Expansion of clinical indications
- Enhancement of existing therapies
- Acceleration of research and development efforts
The potential to broaden clinical indications is particularly exciting from a medical perspective. Mental health disorders are complex and often interconnected and expanding the application of NeuroStar therapy could open up new treatment avenues for patients who have options.
Moreover, the ability to invest in commercial initiatives could lead to wider adoption of transcranial magnetic stimulation (TMS) therapy, which has shown promise in treating depression and other mental health conditions. Increased adoption could generate more real-world data, further refining treatment protocols and potentially improving patient outcomes.
However, it's important to note that expanding clinical indications requires rigorous clinical trials and regulatory approvals. Investors should monitor the company's progress in initiating and completing these trials, as well as any interactions with regulatory bodies like the FDA.
The medical community will be watching closely to see how Neuronetics leverages this financial flexibility to advance the field of neurohealth. If successful, this could represent a significant step forward in non-pharmacological approaches to mental health treatment.
MALVERN, Pa., July 30, 2024 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM), a medical technology company focused on designing, developing, and marketing products that improve the quality of life for patients who suffer from neurohealth disorders, today announced that it entered into a debt facility of up to
"We are pleased to announce this new credit facility with Perceptive Advisors, which strengthens our balance sheet and provides additional financial flexibility to support our initiatives and programs," said Keith Sullivan, President and Chief Executive Officer of Neuronetics. "This funding will allow us to continue to invest in our commercial initiatives, expand our clinical indications, and drive adoption of our NeuroStar Advanced Therapy for Mental Health."
The loan has a 5-year term, maturing on the fifth anniversary of the closing date. Interest will accrue on the outstanding principal balance of the facility at a rate per annum equal to the greater of (a) forward-looking one-month term SOFR as posted by the CME group and (b) four and one-half percent
As part of the agreement, Neuronetics has issued warrants to purchase 1,125,000 shares of its common stock to Perceptive, with the potential for additional warrants if the second tranche is borrowed. The per share exercise price for the warrants is equal to the 10-day volume weighted average price (VWAP) ending on the business day immediately preceding the closing date.
"Neuronetics has established itself as a leader in the field of non-invasive neuromodulation for mental health disorders," said Sam Chawla at Perceptive Advisors. "We are excited to partner with the Company and support their mission to improve the lives of patients suffering from depression and other mental health conditions. This financing reflects our confidence in the company's growth potential and the increasing adoption of NeuroStar therapy."
Credo 180 acted as the sole financial advisor to Neuronetics on this transaction.
About Perceptive Advisors
Founded in 1999 and based in New York, NY, Perceptive Advisors is an investment management firm focused on supporting the progress of the life sciences industry by identifying opportunities and directing financial resources to the most promising technologies in healthcare. For more information about Perceptive, visit www.perceptivelife.com.
About Neuronetics
Neuronetics, Inc. believes that mental health is as important as physical health. As a global leader in neuroscience, Neuronetics is redefining patient and physician expectations with its NeuroStar Advanced Therapy for Mental Health. NeuroStar is a non-drug, noninvasive treatment that can improve the quality of life for people suffering from neurohealth conditions when traditional medication hasn’t helped. NeuroStar is indicated for the treatment of depressive episodes and for decreasing anxiety symptoms for those who may exhibit comorbid anxiety symptoms in adult patients suffering from MDD and who failed to achieve satisfactory improvement from previous antidepressant medication treatment in the current episode. It is also FDA-cleared as an adjunct for adults with obsessive-compulsive disorder and for adolescent patients aged 15-21 with MDD. NeuroStar Advanced Therapy is the leading TMS treatment for MDD in adults with over 6.4 million treatments delivered. Neuronetics is committed to transforming lives by offering an exceptional treatment that produces extraordinary results. For safety and prescribing information, NeuroStar.com.
Investor Contact:
Mike Vallie or Mark Klausner
ICR Westwicke
443-213-0499
ir@neuronetics.com
Media Contact:
EvolveMKD
646-517-4220
NeuroStar@evolvemkd.com
FAQ
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