Nevro closes over-subscribed $173m round

Nevro Corp. (NYSE:NVRO) said Monday it closed a $172.5 million round of financing, including a fully-exercised underwriter’s over-allotment option, through the sale of 1.75% convertible senior notes due 2021.

Funds raised in the round are slated to be used to pay for the net cost of convertible note hedge and warrant transactions from the offering, with $21 million earmarked to repay an existing term loan agreement with Capital Royalty Partners.

Remaining proceeds from the round will go towards general corporate purposes, including the continued commercialization of its Senza spinal cord stimulation system, as well as R&D and working capital.

J.P. Morgan and Morgan Stanley acted as joint book-runners for the offering, while Leerink Partners and JMP Securities acted as co-managers, according to the company.

Nevro originally hoped to bring in $125 million in the round when it announced it last week, but raised the amount to $150 million after pricing the offering.

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 Redwood City, Calif.-based Nevro to label the device’s HF10 therapy as superior to conventional spinal cord stimulators.

The post Nevro closes over-subscribed $173m round appeared first on MassDevice.

from MassDevice http://ift.tt/28EAyn7