MORRISVILLE — Robotic surgical device company TransEnterix has reached an agreement for a $40 million loan line that will allow it to expand.
The deal is with Hercules Capital Inc., and the refinancing gives the Morrisville-based company the ability to commercialize its Senhance surgical devices in the United States.
“We are pleased to partner with Hercules to refinance our debt and strengthen our balance sheet in a non-dilutive manner,” said Chief Executive Officer Todd M. Pope in a statement.
Hercules funded the first $20 million tranche on Wednesday. TransEnterix will be eligible to draw on the second tranche of $10 million upon achievement of certain Senhance System revenue-related milestones for its 2018 fiscal year.
A third tranche of $10 million would be available to the company upon achieving designated trailing six months GAAP net revenue from Senhance sales.
The company can make interest-only payments until Dec. 1, 2020, and at the end of the interest-only period, TransEnterix will be required to repay the term loans over an 18-month period, with a final maturity date occurring on June 1, 2022.
The company repaid all amounts owed under its previous loan agreement with Innovatus Life Sciences Lending Fund on Wednesday.
The company received Food and Drug Administration approval in October. In the first quarter, it sold two units in international markets, and it has already sold three units in the second quarter, two of which were overseas.
The company’s stock closed Wednesday at $2.92, down 15 cents, or 4.9 percent.
This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism