Acutus Medical, Inc. (NASDAQ: AFIB) has received a commitment letter from Deerfield Management Company (Deerfield) to refinance its current loans with a new longer-term credit facility, as well as a definitive agreement to sell the Company’s left-heart access portfolio to Medtronic, in combination with the refinancing.
These two transactions, combined with the company’s recent restructure, will result in a full recapitalization of the firm to fund the Company’s strategic growth aspirations. Acutus has earned a reputation as an arrhythmia management company focused on enhancing the way cardiac arrhythmias are diagnosed and treated.
Sale of Left-Heart Access Portfolio
The AcQCross line of sheath-compatible septal crossing devices, the AcQGuide MINI incorporated crossing device and sheath, the AcQGuide FLEX steerable introducer with incorporated transseptal dilator and needle, and the AcQGuide VUE steerable sheath are all part of the Company’s left-heart access portfolio being sold.
Debt Refinancing Agreement
A commitment letter has been signed by Acutus to refinance its current financing facility. In conjunction with the sale of the left-heart access portfolio, the existing debt arrangement, which has a maturity date of May 20, 2024, will be replaced with a new debt facility. The new debt arrangement with Deerfield will have a $35 million aggregate principal with a five-year maturity date, as well as amortization payments due 36, 48, and 60 months after the loan closes. In connection with the refinancing, it anticipate issuing Deerfield warrants to purchase its common stock.
Financial Overview
Upon the initial closing of the transaction, Medtronic will pay Acutus $50 million in cash, contingent upon the fulfillment of ordinarily closing conditions, including the cessation or cancellation of all relevant waiting periods and any extensions thereof under applicable antitrust laws, the closing of the Company’s debt refinancing, as well as contingent consideration payments over time-based on the achievement.