Neuronetics, a commercial stage medical technology company focused on designing, developing and marketing products that improve the quality of life for patients who suffer from neurological health disorders, amended its term loan agreement with investment affiliates managed by SLR Investment Corp., which was originally entered into on March 2, 2020, and subsequently amended on April 20, 2020, and Dec. 2, 2020. The latest amendment includes modifications to the ability of Neuronetics to extend the interest-only period, reductions of certain revenue covenants and the elimination of the final term loan tranche available to the company.
Neuronetics has the ability to, subject to certain conditions, extend the interest only period on the initial term A loan to 36 months from 24 months, which, if conditions are satisfied, would allow for the commencement of loan principal amortization payments beginning on March 1, 2023.
In addition, the amendment reduced the trailing 12-month net product revenue covenants related to the facility.
As part of the Dec. 2, 2020, amendment, Neuronetics was permitted to borrow, at its election, up to $15 million in three separate $5 million tranches (term B, C, and D loans). The three tranches were available through June 20, 2021; Dec. 20, 2021; and June 20, 2022, respectively, based on the achievement of agreed upon trailing 12-month net product revenue targets for each tranche. The company previously elected not to draw either of the term B or term C tranches and, as part of this amendment, the company agreed that it would not draw the term D tranche.
