Senseonics enters into a $ 20 million credit facility
The agreement is with certain funds managed by the existing stakeholder Highbridge Capital Management. Senseonics is expected to be $ 15 million
The Senseonics First Lien Fixed Term Loan pays cash interest at 12% annual rate or, at Senseonics’ option, in kind at 13% annual rate. The company may also obtain the remaining $ 5 million from the first term loan within 120 days, subject to certain conditions. Senseonics has issued 1.5 million shares of common stock as a commitment fee to the lenders of the first term loan.
The developer of the continuous glucose monitoring system also announced an exchange agreement with Highbridge-managed funds that will provide $ 24 million in its outstanding 5.25% senior convertible bonds due in 2025 and nearly $ 15.7 million in newly issued Secured Secondary Pfandbriefe due on January 24, 2022, provides for more than 11 million common shares of Senseonics.
In connection with the exchange, Senseonics will issue the holders of the second Pfandbriefe with warrants to purchase 4.5 million common shares at ¢ 66 per share by the third anniversary of their issue. The second Pfandbriefe have an annual interest rate of 7.5% or, at Senseonics’ option, 8.25% in cash.
Senseonics expects the transaction to close on or about April 24th.
“This financing immediately improves the liquidity and financial stability of Senseonics,” said Tim Goodnow, President and CEO of Senseonics, in a press release. “Combined with our existing cash and cash equivalents and our previously announced cost reduction measures, we believe this credit facility will, as announced, provide the company with sufficient funding to fully explore strategic opportunities.
“At the same time, we believe the facility will provide resources to complete our value-added development activities for the Eversense XL CGM system for use in the US for up to 180 days, including filing for FDA approval for commercial distribution.”