Senseonics draws down $15 million from first-lien secured term loan

By Rebecca Melvin

New York, April 22 – Senseonics Holdings Inc. has entered into a new senior secured term loan agreement with funds managed by Highbridge Capital Management, LLC, under which the company will draw down $15 million from a new first-lien secured term loan that matures Oct. 24, 2021, according to a company release.

Interest on the first-lien term loan is 12% or, at Senseonics’ option, payment in kind at an annual rate of 13%.

At its option, Senseonics may draw the remaining $5 million from the first-lien term loan within 120 days subject to conditions.

The new credit facility is expected to provide the company with enough funding to fully explore strategic options, as previously announced, the company’s president and chief executive Tim Goodnow, said in the release.

The company also announced a new exchange agreement with funds managed by Highbridge, under which $24 million of Senseonics’ 5.25% senior convertible notes due 2025 will be exchanged for $15,675,000 million of newly issued second-lien secured notes due Jan. 24, 2022.

In connection with the exchange, the company will issue warrants to the holders of the second-lien notes to purchase an aggregate of 4.5 million shares of common stock at $0.66 per share at any time through the third anniversary of their issuance.

Interest on the second-lien notes is 7.5% or, at Senseonics’ option, payment in kind at an annual rate of 8.25%.

Portions of the debt under the new credit facilities may be converted into shares of common stock, in some cases at the option of Highbridge and in others at the option of the company. In addition, the company has the right to prepay the new credit subject to a prepayment premium, which under some conditions can be paid in common stock.

As consideration for the first-lien term loan, the company issued 1.5 million shares of common stock to the loan’s lenders as a commitment fee.

The transaction is expected to close April 24, subject to customary closing conditions.

Senseonics Holdings is a Germantown, Md.-based medical technology company.

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