Senseonics Holdings, Inc. announced that it has entered into a loan and security agreement for up to $50 million total gross proceeds in the transaction on September 8, 2023. The transaction will include participation from new lender Hercules Capital, Inc., and several financial institutions or entities party. The company will issue senior secured term loans in the transaction. The loans under the Loan Agreement bear interest at an annual rate equal to the greater of (i) the prime rate as reported in The Wall Street Journal plus 1.40% and (ii) 9.90%. Borrowings under the Loan Agreement are repayable in monthly interest-only payments through (a) initially, September 1, 2026 and (b) if company satisfies the Interest Only Extension Conditions, the Maturity Date. After the interest-only payment period, borrowings under the Loan Agreement are repayable in equal monthly payments of principal and accrued interest until the Maturity Date. The company paid a $375,000 facility fee upon closing and will pay additional facility charges in connection with any borrowing of the Tranche 2 Loan or Tranche 3 Loan, in each case in the amount of 0.50% of the amount of such tranche of loans. In addition, in connection with the entry into the Loan Agreement, the company issued warrants to certain of the Lenders to acquire an aggregate of 832,362 shares of common stock at an exercise price of $0.6007 per share. The warrants may be exercised through the earlier of (i) the seventh anniversary of the Effective Date and (ii) the consummation of certain acquisition transactions involving the Company, as set forth in the Warrants. Pursuant to the Loan Agreement, the Company also agreed to issue additional seven year term Warrants upon the funding of the Tranche 2 and Tranche 3 Loans, which Warrants would be exercisable for an aggregate number of shares equal to 2% of the funded loan amount divided by the exercise price of $0.6007 per share.
On the same date the company has received $25 million in its first tranche. Two additional tranches of term loans in the amounts of up to $10 million and $15 million respectively, which will become available to the company upon company?s satisfaction of certain terms and conditions set forth in the Loan Agreement. The loans under the Loan Agreement will mature on September 1, 2027.