Senseonics Holdings, a medical technology company focused on the development and manufacturing of long-term, implantable continuous glucose monitoring (CGM) systems for people with diabetes, entered into a $50 million loan facility with Hercules Capital. The company also announced it drew down $25 million upon the transaction closing.

“This loan facility provides increased financial flexibility for Senseonics as we endeavor to help more patients with diabetes by advancing our product pipeline and continuing to collaborate with Ascensia Diabetes Care to build the Eversense brand and drive global patient adoption,” Rick Sullivan, CFO of Senseonics, said. “This year, we have made significant progress simplifying the company’s capital structure and extending the maturation of our debt to support our growth plans. The Hercules loan facility strengthens our balance sheet on a non-dilutive basis and is currently expected to provide the capital required to fund our current operating plans to cash flow positivity.”

“Hercules is excited by Senseonics’ differentiated Eversense technology and opportunity for penetration in the global CGM market. We are encouraged by the company’s recent progress in expanding their commercial footprint, increasing coverage and advancing their product pipeline and look forward to their next phase of growth,” Bryan Jadot, senior managing director and life sciences group head at Hercules, said.

The term loan facility provides for up to $50 million of term loans in the aggregate, available to be funded in multiple tranches. In addition to its initial drawdown of $25 million, Senseonics may, for a period of time following achievement of revenue milestones, draw an additional tranche of up to $10 million. An additional tranche will be available to Senseonics in the amount of up to $15 million for a period of time following additional revenue and gross margin milestones. In addition, the availability of each tranche is subject to certain customary conditions to drawing. Senseonics is under no obligation to draw funds in the future.