Pulmonx, a global company in minimally invasive treatments for lung disease, closed a five-year credit facility for up to $60 million with Perceptive Advisors.
The credit facility consists of an initial $40 million term loan drawn at closing to refinance the company’s existing debt, and an option to draw an additional $20 million in unfunded capital through the end of 2027, subject to the achievement of certain revenue milestones. The new facility is interest only until maturity in 2031, and bears interest at a rate equal to one-month Term SOFR (subject to a 3.75% floor) plus 7.0%, 2.0% of which may be “paid-in-kind” at the company’s option for a period of three years following the closing date.
“This new debt facility immediately strengthens our capital structure,” Glen French, president and CEO of Pulmonx, said. “By extending our debt maturity to 2031 with favorable terms, we can shift our focus toward executing our commercial strategy and advancing our key clinical programs to deliver our life-changing treatment to patients with severe emphysema.”
Sam Chawla, portfolio manager at Perceptive Advisors, said, “The Pulmonx Zephyr Valve is a market-leading product backed by robust clinical evidence, global guideline endorsement, and broad reimbursement that fulfills a significant unmet need for severe emphysema patients who often have no other treatment options. This financing reflects our confidence in management’s ability to reposition the company for profitable and sustainable growth.”
