NeuroPace, a medical device company focused on transforming the lives of people living with epilepsy, entered into a new $75 million credit facility with MidCap Financial, consisting of a $60 million term loan and a $15 million revolving credit facility. Proceeds from the new term loan were used to fully repay NeuroPace’s term loan with CRG Partners IV, with proceeds of the new revolving credit facility available for working capital needs and other corporate purposes.
“We are pleased to partner with MidCap Financial on this new credit facility, which provides non-dilutive capital at favorable terms that reduce our cash interest expense and support the continued growth of our business,” Joel Becker, CEO of NeuroPace. “The proceeds and improved structure provide us the financial strength and flexibility to continue expanding patient access to the RNS System and to invest in key growth initiatives, including site-of-service expansion, new indications, direct-to-consumer programs, new product development and real-world evidence generation. We also want to thank CRG for their partnership and support over the past several years. They have been an excellent partner in the company’s development.”
The company’s new loan agreement includes a maturity date of five years for both the term loan and revolving credit facility. The annual interest rate is equal to SOFR subject to a floor of 2%, plus (1) 5.5% under the term loan and (2) 3.75% under the revolving loan.
Armentum Partners served as financial advisor to NeuroPace on the transaction.
