Neuronetics Announces Modification of its Credit Facility with SLR Investment Corp.
MALVERN, Pennsylvania, Feb. 22 Feb. 20, 2022 (GLOBE NEWSWIRE) — Neuronetics, Inc. (NASDAQ:STIM), a commercial-stage medical technology company focused on designing, developing and commercializing products that improve the quality of life for patients with neurological disorders. , today announced that it has amended its term loan agreement with its current lenders, investment affiliates managed by SLR Investment Corp. (SLR), originally entered into on March 2, 2020, and subsequently amended on April 20, 2020 and December 2, 2020. This amendment includes changes to the Company’s ability to extend the interest-only period, the reduction of certain covenants relating to income and the elimination of the last tranche of term loan available to the Company.
The Company has the option, subject to certain conditions, to extend the interest only period on the original Term Loan A from 24 months to 36 months, which, if such conditions are met, would allow the commencement of payments of amortization of loan principal beginning March 1, 2023.
In addition, the amendment reduced the covenants on last twelve months product net revenue related to installation.
As part of the December 2, 2020 amendment, the Company was authorized to borrow, at its option, up to $15.0 million in three separate tranches of $5.0 million (Term Loans B, C and D). The three tranches were available through June 20, 2021, December 20, 2021, and June 20, 2022, respectively, based on the achievement of year-over-year net product revenue targets for each tranche. The Company had previously elected not to draw any of the Term B or Term C tranches and, as part of this amendment, the Company agreed not to draw the Term D tranche.
About SLR Investment Corp:
SLR Investment Corp (NASDAQ: SLRC) is a yield-oriented business development company (BDC) that invests directly and indirectly in senior secured loans of middle market private companies to generate current income that is distributed quarterly to shareholders. We partner with middle market US companies in various industries to provide customized debt financing solutions.
SLR Investment became a publicly traded BDC in the first quarter of 2010 and is rated Investment Grade by Moody’s and Fitch.
Neuronetics, Inc. believes that mental health is as important as physical health. As the world leader in neuroscience and the industry’s largest TMS company, Neuronetics is redefining patient and physician expectations by designing and developing products that improve the quality of life for people with psychiatric disorders. A non-invasive, drug-free, FDA-approved treatment for people with depression, Neuronetics’ NeuroStar® Advanced Therapy System is today’s leading transcranial magnetic stimulation (TMS) treatment for major depressive disorder with more than four million treatments administered. NeuroStar is extensively researched and backed by the largest clinical data set of any TMS system for depression, including the world’s largest registry of depression outcomes. Neuronetics is committed to transforming lives by providing an exceptional treatment option that produces extraordinary results. For safety information and directions for use, visit NeuroStar.com.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained in the press release regarding Neuronetics, Inc. (the “Company”) that are not historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by terms such as “outlook”, “potential”, “believe”, “expect”, “plan”, “anticipate”, “predict”, “may”, “will”, “could”, ” would” and “should” and the negative of these similar terms and expressions. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this release. These risks and uncertainties include, but are not limited to, risks and uncertainties related to: the impact of COVID-19 on the Company’s operating plans and budgets as well as general political and economic conditions, including due to the efforts government authorities to mitigate COVID-19 19, such as travel restrictions and third-party business closures and the related impact on resource allocation, manufacturing and supply chains, and patient access commercial products; the Company’s ability to ensure business continuity; the Company’s ability to achieve or maintain profitable operations due to its history of losses; the company’s reliance on the sale and use of its NeuroStar advanced therapy system for mental health to generate revenue; the scale and effectiveness of the Company’s sales force; the availability of coverage and reimbursement by third-party payers for treatments using the Company’s products; demand from physicians and patients for treatments using the Company’s products; developments in competing technologies and therapies for the indications that the Company’s products address; product defects; the Company’s ability to obtain and maintain intellectual property protection for its technology; developments in clinical trials or regulatory review of NeuroStar Advanced Therapy for Mental Health System for additional guidance; and regulatory developments in the United States and other applicable jurisdictions. For a discussion of these and other related risks, please refer to the Company’s recent filings with the SEC which are available on the SEC’s website at www.sec.gov. These forward-looking statements are based on the Company’s expectations and assumptions as of the date of this press release. Except as required by law, the Company assumes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events or changes in the Company’s expectations. .
Mike Vallie or Mark Klausner
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