Nevro (NYSE:NVRO) announced that it acquired Vyrsa Technologies, a company developing a minimally invasive joint pain treatment.
Vyrsa has a portfolio of sacroiliac (SI) joint pain devices for use in SI joint fusion procedures. Established in 2021, the company manufactures and supports a complete portfolio of FDA-cleared devices.
Dr. David Caraway, Nevro chief medical officer, said in a news release that the Vyrsa portfolio allows physicians to tailor to patient needs. He said the implants provide “optimal stability” and enhance the opportunity for the SI joint to fuse.
Under the terms of the transaction, Nevro paid $40 million at closing. That could rise to $75 million with $35 million in additional development and sales milestone payments down the line. Nevro expects Vyrsa to bring an accretive impact for both revenue and adjusted EBITDA in 2024.
“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,” said Nevro CEO Kevin Thornal. “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 joint.”
Nevro announces the closing of a credit facility and refinancing, too
The Redwood City, California-based spinal cord stimulation technology developer also announced the closing of a six-year credit facility. It plans to use the proceeds of the $200 million term loan facility to repurchase the majority of its 2025 convertible notes. Nevro also earmarked proceeds for working capital and other general corporate purposes.
Interest accrues at a per annum rate of SOFR + 5.25%. The company also issued the lender a warrant to purchase approximately 2.6 million shares of common stock. It set the price at $23.19 per share, a 40% premium to its trailing five-day per share price.
“We are pleased to refinance a majority of our debt and push the maturity out to 2029,” CFO Rod MacLeod said. “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.”