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SLR Investment Amends Credit Facility for Neuronetics

February 22, 2022, 07:45 AM
Filed Under: Medical

Neuronetics amended its term loan agreement with its current lenders, investment affiliates managed by SLR Investment Corp. (SLR), which was originally entered into on March 2, 2020 and subsequently amended on April 20, 2020 and December 2, 2020. This amendment includes modifications to the ability of the Company to extend the interest-only period, the reduction of certain revenue covenants, and the elimination of the final term loan tranche available to the Company.

The Company 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 such 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 twelve-month net product revenue covenants related to the facility.

As part of the December 2, 2020 amendment, the Company was permitted to borrow, at its election, up to $15.0 million in three separate $5.0 million tranches (Term B, C, and D Loans). The three tranches were available through June 20, 2021, December 20, 2021, and June 20, 2022, respectively, based on the achievement of agreed upon trailing twelve-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.

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