Nuvectra, a neurostimulation medical device company, reached an agreement with Silicon Valley Bank and Oxford Finance, the lenders of its existing credit facility, to secure a second amendment to the company’s loan and security agreement for $45 million.
Th $45 million term loan is available in three tranche payments, from which the first tranche of $27.5 million was funded to repay the existing term loan in full, at the closing of the agreement.
In addition, on February 16, 2018, the company drew down the second tranche commitment for $12.5 million following the achievement of the $20 million trailing six-month product revenue milestone as of January 31, 2018. The third tranche commitment allows the company to draw down another $5 million commencing on the date of achieving trailing six-month product revenue of $25 million and ending on the earlier of March 31, 2019 or 60 days following the third tranche milestone. The third tranche commitment replaces the existing $5 million revolving line commitment.
The amended agreement also extends the amortization period of the loan with principal payments scheduled to begin April 2020 based on the drawn second tranche.
Walter Berger, COO and CFO, said, “We are pleased to announce the amended loan and security agreement that provides the company with greater financial flexibility and an extended amortization period.”
