Refinances with $200M Structured Debt Maturing in 2029
REDWOOD
CITY, Calif., Nov. 30,
2023 /PRNewswire/ -- Nevro Corp. (NYSE: NVRO), a
global medical device company that is delivering comprehensive,
life-changing solutions for the treatment of chronic pain, today
announced that it has acquired Vyrsa Technologies ("Vyrsa"), a
privately held medical technology company focused on a minimally
invasive treatment option for patients suffering from chronic
sacroiliac joint ("SI Joint") pain.
Under the terms of the transaction, which signed and closed on
November 30, 2023, Nevro paid
$40 million at closing and agreed to
pay up to an additional $35 million
in cash or stock tied to achievement of certain development and
sales milestones.
The US SI joint fusion market is valued at over $2 billion and expected to grow by double digits
over the next several years1. Vyrsa, established in
2021, is the only SI joint company that manufactures and supports a
complete portfolio of FDA-cleared, state-of-the-art sacroiliac
joint fusion devices.
Nevro CMO David Caraway, M.D., stated, "Vyrsa's comprehensive
product suite allows physicians to tailor therapy to specific
patient needs. Their innovative implants provide optimal stability
and enhance the opportunity for the SI joint to fuse, providing
relief to patients suffering from chronic SI joint pain."
The Vyrsa portfolio of SI joint devices allows
physician utilization of the established SI joint fusion Category I
CPT codes at all approved sites of service for SI joint fusion
procedures.
Nevro CEO Kevin Thornal
commented, "The acquisition of Vyrsa leverages Nevro's ability to
drive long-term shareholder value by accelerating our key strategic
initiatives of commercial execution, market penetration, and profit
progress. Vyrsa offers differentiated implants to our current call
point of physicians that will help drive growth. We are ecstatic to
be able to bring long-term pain relief to the 15-30% of people
suffering with chronic low back pain associated with the SI
joint2."
Vyrsa is projected to be accretive to Nevro in 2024 for both
revenue and AEBITDA.
Closes $200 Million Term Loan
Credit Facility and Refinances Portion of 2025 Convertible
Notes
Nevro also announced the closing of a 6-year, $200 million term loan credit facility, the
proceeds of which will be used to repurchase the majority of its
2025 Convertible Notes and for working capital and other general
corporate purposes. Interest on the term loans accrues at a per
annum rate of SOFR + 5.25%. At Nevro's election, certain portions
of the interest may be paid-in-kind. Nevro also issued the lender a
warrant to purchase approximately 2.6 million shares of Nevro
common stock at a $23.19 exercise
price, representing a 40% premium to Nevro's trailing 5-day
VWAP.
Nevro CFO Rod MacLeod noted, "We
are excited to be able to diversify our product offering and drive
growth with Vyrsa. We are also pleased to refinance a majority of
our debt and push the maturity out to 2029. We evaluated multiple
financing options and chose this path to limit equity dilution to
2.6 million warrant shares versus a typical convertible offering
that would have been much more dilutive. Nevro has had a strong,
long-term relationship with Braidwell, an investor in our company
and our lender for this transaction, and we look forward to having
their continued support for years to come."
"We are delighted to expand our existing investment in Nevro,"
said Narendra Nayak, Partner at
Braidwell. "Over the years, Nevro has done the hard work of scaling
its commercial infrastructure and is now poised to offer its
customers a growing portfolio of complementary technologies to
drive the company's top and bottom lines."
Latham & Watkins served as Nevro's legal counsel. J. Wood
Capital Advisors served as financial advisor to Nevro on the
financing.
About Nevro
Headquartered in Redwood City, California, Nevro is a global
medical device company focused on delivering comprehensive,
life-changing solutions that continue to set the standard for
enduring patient outcomes in chronic pain treatment. The company
started with a simple mission to help more patients suffering from
debilitating pain and developed its proprietary 10 kHz Therapy™, an
evidence-based, non-pharmacologic innovation that has impacted the
lives of more than 100,000 patients globally. Nevro's comprehensive
HFX™ spinal cord stimulation (SCS) platform includes a
Senza™ SCS system and support services for the treatment of
chronic pain of the trunk and limb and painful diabetic
neuropathy.
Senza®, Senza II®, Senza Omnia™, and HFX iQ™ are the only SCS
systems that deliver Nevro's proprietary 10 kHz Therapy. Nevro's
unique support services provide every patient with an HFX Coach™
throughout their pain relief journey and every physician with HFX
Cloud™ insights for enhanced patient and practice management.
SENZA, SENZA II, SENZA OMNIA, OMNIA, HF10, the HF10 logo, 10 kHz
Therapy, HFX, the HFX logo, HFX iQ, the HFX iQ logo, HFX Algorithm,
HFX CONNECT, the HFX Connect logo, HFX ACCESS, the HFX Access logo,
HFX COACH, the HFX Coach logo, HFX CLOUD, the HFX Cloud logo,
RELIEF MULTIPLIED, the X logo, NEVRO, and the NEVRO logo are
trademarks or registered trademarks of Nevro Corp. Patents covering
Senza HFX iQ and other Nevro products are listed at
Nevro.com/patents.
To learn more about Nevro, connect with us
on LinkedIn, Twitter, Facebook, and Instagram.
Forward-Looking Statements
In addition to historical
information, this press release contains forward-looking statements
reflecting the company's current beliefs and expectations of
management made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including
regarding the acquisition, integration, and prospects of Vyrsa, its
products and the US SI joint market. These forward-looking
statements are based upon information that is currently available
to us or our current expectations, speak only as of the date
hereof, and are subject to numerous risks and uncertainties,
including our ability to successfully integrate Vyrsa with Nevro's
existing business, our ability to successfully continue to develop
and commercialize our products; our ability to manufacture our
products to meet demand; the level and availability of third-party
payor reimbursement for our products; our ability to effectively
manage our anticipated growth and the costs and expenses of
operating our business; our ability to protect our intellectual
property rights and proprietary technologies; our ability to
operate our business without infringing the intellectual property
rights and proprietary technology of third parties; competition in
our industry; additional capital and credit availability; our
ability to attract and retain qualified personnel; and product
liability claims, in each case, including with respect to Vyrsa.
These factors, together with those that are described in greater
detail in our Annual Report on Form 10-K filed on February 21, 2023, as well as any subsequent
reports filed with the Securities and Exchange Commission, may
cause our actual results, performance or achievements to differ
materially and adversely from those anticipated or implied by our
forward-looking statements. We expressly disclaim any obligation,
except as required by law, or undertaking to update or revise any
such forward-looking statements.
Investors and Media:
Nevro Corp.
ir@nevro.com
1 Data on file
2 Cohen, Steven P. et al. Sacroiliac Joint Pain: A
Comprehensive Review of Epidemiology, Diagnosis and Treatment
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SOURCE Nevro Corp.