Neuronetics Announces Amendment to Credit Facility
MALVERN, Pa., December 08, 2020 (GLOBE NEWSWIRE) – Neuronetics, Inc. (NASDAQ: STEM), a commercial-stage medical technology company focused on the design, development and commercialization of products that improve the quality of life of patients with psychiatric disorders, today announced that it has amended its term loan agreement with its current lenders, affiliated investment companies managed by Solar Capital Partners, LLC (Solar). The amendment includes resetting certain revenue covenants and splitting the second tranche of the term loan, initially $ 15.0 million, into three separate tranches of $ 5.0 million.
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, an A term loan of up to $ 35. , $ 0 million and a B term loan of up to $ 15.0 million. On March 2, 2020, the Company withdrew all of the $ 35.0 million available to it under Term Loan A, and simultaneously prepaid and terminated its previous $ 30.0 million credit agreement with Oxford Finance, which was partially funded with proceeds from the Solar Plant.
Term Loan B was originally established to allow the company to borrow up to $ 15.0 million in a single installment when meeting a specific twelve-month net income target. The amendment allows the Company to borrow, at its option, up to $ 15.0 million in three separate tranches of $ 5.0 million (term loans B, C and D). All three tranches are available until June 20, 2021, December 20, 2021 and June 20, 2022, respectively, based on the achievement of the agreed twelve-month net product revenue targets for each tranche.
The agreement also reduced the twelve-month product net income requirement for the Term B portion of the facility. Subject to certain conditions, the Company has the option of extending the interest-only period on the original Term Loan A to 36 months from 24 months after reaching the income targets associated with Term Loan B.
“We are very pleased to have changed our credit facility with Solar. In light of the disruption caused by COVID-19 earlier in the year, we worked with Solar to update our facility to allow us greater flexibility to continue our growth strategy going forward, ”said Steve Furlong, CFO of Neuronetics. “Solar has been a great partner for us, and we look forward to working together as we seek to leverage the strength of our track record to drive adoption and continued use of the NeuroStar.® Advanced therapy system to provide relief to patients with psychiatric disorders.
“We are very pleased to modify the term of Neuronetics’ credit facility to help support the continued business growth of the company for years to come,” said Anthony Storino, Head of Life Science Lending Platform at Solar Capital . “We look forward to continuing our relationship with the team at Neuronetics and supporting their efforts to help patients with depression, which we believe is essential for the mental health of Americans, both during and after the pandemic. of COVID-19. “
About Solar Capital Partners
Solar Capital Partners, LLC (“Solar Capital Partners”) is an SEC-registered investment adviser that invests primarily directly in leveraged US mid-market companies in the form of cash flow and premier secure investments. rank based on assets. Solar Capital Partners manages over $ 7 billion in investable capital, most notably as an investment advisor 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 biopharmaceutical, medical device, health IT and health services stage companies, both private and public funded by venture capital, and from the clinical stage before turnover to the early commercial stage. For more information, please visit https://www.solarcapitalpartnersllc.com/Financial-Solutions/Life-Science-Lending
Neuronetics, Inc. is a commercial-stage medical technology company focused on the design, development and commercialization of products that improve the quality of life for patients with psychiatric disorders. Its commercial product, the NeuroStar® Advanced Therapy System, is a non-invasive, non-systemic office treatment that uses transcranial magnetic stimulation, or TMS, to create a pulsed magnetic field of MRI strength 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 over previous antidepressant therapy in the. current episode. NeuroStar is also available in other parts of the world, including Japan, where it is listed under the National Health Insurance of Japan. Additional information can be found at www.neurometics.com.
Safe Harbor Declaration 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 can be identified. by terms such as “prospect”, “potential”, “believe”, “expect”, “plan”, “anticipate”, “predict”, “may”, “will”, “could”, “should” “And” should “as well as the negative of such terms and 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 any forward-looking statements contained in this press release. These risks and uncertainties include, but are not limited to, risks and uncertainties related to: the impact of COVID-19 on general political and economic conditions, including as a result of efforts by government authorities to mitigate COVID -19, such as travel bans, shelters in placing orders and shutting down third-party businesses and the related impact on resource allocation, manufacturing and supply chains, and patient access to commercial products ; the Company’s ability to execute its business, operational and budgetary continuity plans in light of the COVID-19 outbreak; the Company’s ability to complete or maintain profitable operations due to its history of losses; the Company’s reliance on the sale and use of its NeuroStar advanced therapy system to generate revenue; the scale and effectiveness of the Company’s sales force; the availability of coverage and reimbursement by third party payers for treatments using the Company’s products; demand from physicians and patients for treatments using the Company’s products; developments in 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 the NeuroStar advanced therapy system for additional indications; and regulatory developments in the United States and other applicable jurisdictions. For a discussion of these and other related risks, please refer to recent documents filed by the Company with the SEC, 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 assumes no obligation 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. .
Mark R. Klausner