Sanuwave Announces Strategic Debt Refinancing with New Credit Facility

Core Viewpoint - Sanuwave Health, Inc. has successfully refinanced its existing debt, improving its financial position through a new credit facility from J.P. Morgan, which includes a term loan and a revolving credit facility [2][4]. Group 1: Debt Refinancing Details - The new credit facility consists of a four-year term loan of $23 million and a two-year $5 million revolving credit facility, both with an interest rate of SOFR +350 basis points [1][2]. - The company has drawn approximately $1 million from the revolving credit facility at the time of closing, resulting in total outstanding debt of approximately $24 million under the new facility [1][2]. Group 2: Use of Proceeds - The proceeds from the new borrowing were primarily used for the partial repayment of the previous $27.5 million NH Expansion debt facility [3]. - The remaining $3.5 million owed on the NH Expansion debt facility, along with approximately $1.3 million in transaction costs, was repaid using cash from operations and proceeds from the sale of certain patents [3]. Group 3: Management Commentary - The CEO of Sanuwave highlighted that this refinancing is a significant step in strengthening the company's financial position, emphasizing the reduction in interest rates and overall debt load [4]. - The CEO expressed confidence in J.P. Morgan as a lender and noted the absence of prepayment penalties as beneficial for generating cash flow [4].