Neuronetics, a medical technology company focused on designing, developing and marketing products that improve the quality of life for patients who suffer from neurohealth disorders, entered into a debt facility of up to $90 million with Perceptive Advisors. Under the term loan, Neuronetics received the first tranche of $50 million at closing. Part of the initial $50 million tranche will be used to pay off, in full, the company’s existing SLR Capital term loan. Upon achieving certain milestones, a second tranche of $15 million will be available until Dec. 31, 2025. Under the third tranche, the company can request to borrow $25 million on or before June 30, 2026.
“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,” Keith Sullivan, president and CEO of Neuronetics, said. “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 forward-looking one-month term SOFR as posted by the CME group and four and one-half percent 4.50% per annum, plus an applicable margin of 7.00%.
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,” Sam Chawla at Perceptive Advisors said. “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.
