Accuray exchanges $82mln convertible notes for 8.88mln shares.

Accuray Incorporated has entered into agreements with holders of its existing 3.75% senior convertible notes to exchange $82 million in notes for 8.88 million shares of common stock and pay $68.6 million in cash. The exchange is expected to close on June 11, 2025, subject to customary conditions. The company has also entered into a new senior secured credit agreement with TCW Asset Management Company LLC.

Accuray Incorporated (NASDAQ: ARAY) has announced a significant financial move, exchanging $82 million in principal amount of its 3.75% senior convertible notes due 2026 for 8.88 million shares of its common stock, with an additional $68.6 million in cash. This exchange is part of a broader restructuring effort aimed at enhancing liquidity and operational flexibility. The transaction is expected to close on June 11, 2025, subject to customary closing conditions [1].

In conjunction with the exchange, Accuray has entered into a new senior secured credit agreement with TCW Asset Management Company LLC. This agreement includes $150 million in new five-year term loan facilities, a $20 million delayed draw term loan facility, and a $20 million revolving credit facility. The proceeds from these facilities, along with available cash on hand, will be used to repay all outstanding indebtedness under the existing senior secured credit agreement [1].

The new financing agreement provides for flexible interest rates, with options including a term SOFR-based rate plus an applicable margin or a base rate, both subject to floors. The company also announced the issuance of warrants to purchase shares of its common stock to certain lenders, providing additional financial incentives for the lenders to enter into the agreement [1].

Accuray's CEO, Suzanne Winter, expressed enthusiasm about the new financing agreement and the appointment of Steven F. Mayer to the company's Board of Directors. Mayer brings extensive governance experience and will contribute to the company's strategic priorities, including transforming radiation therapy care and creating long-term shareholder value [1].

The transaction underscores Accuray's commitment to expanding its powerful potential in radiation therapy, as well as its ability to secure favorable financing terms to support its long-term growth strategies.

References:
[1] https://www.prnewswire.com/news-releases/accuray-announces-convertible-notes-exchange-and-refinancing-of-existing-credit-facilities-302475108.html