Nevro Corp. (NYSE:NVRO) today revealed a $125 million round of financing through the sale of convertible senior notes, due 2021, to support repayment of a term loan agreement, general corporate purposes and continued commercialization of its Senza spinal cord stimulation system.
The offering will include a 30-day underwriters option to purchase an additional $18.8 million aggregate principal amount of notes to cover an over-allotment, Redwood City, Calif.-based Nevro said.
J.P. Morgan and Morgan Stanley will act as joint book-runners for the offering, according to a press release.
Interest rate, conversion rate and conversion price will be determined by negotiations between Nevro and the underwriters, the company said. Notes offered in the round will mature on June 1, 2021, unless repurchased or converted in accordance with terms prior to the date.
A portion of the proceeds will be used to fund the cost of convertible note hedge transactions, with $21 million going towards the repayment of its existing term loan agreement, Nevro said.
Remaining funds will be used for general corporate purposes as well as the commercialization of its Senza spinal cord stimulation system, R&D and to increase working capital.
In April, Nevro said it won pre-market approval from the FDA for new surgical leads designed to be used with its Senza spinal cord stimulation device.
The Senza device, which won an FDA nod in May 2015, is designed to deliver high-frequency electrical impulses of up to 10,000Hz to the spinal cord to avoid the tingling sensation known as paresthesia that bothers some SCS patients. The FDA approval allows Nevro to label the device’s HF10 therapy \ as superior to conventional spinal cord stimulators.