Accuray to Exchange $82mln Convertible Notes, Secures New Credit Facilities

Accuray Incorporated, a radiation therapy company, is exchanging $82 million worth of convertible notes and obtaining new credit facilities. The company develops and manufactures radiation treatment solutions for complex cases, including CyberKnife and TomoTherapy platforms, and provides post-contract customer support, installation services, training, and other professional services.

Accuray Incorporated (NASDAQ: ARAY), a leading provider of radiation therapy solutions, has announced a significant financial restructuring. The company has entered into agreements to exchange $82 million worth of convertible notes for 8.88 million shares of its common stock, with an additional $68.6 million in cash to be paid to the note holders. The exchange is expected to close on or about June 11, 2025, subject to customary closing conditions [1].

In conjunction with this exchange, Accuray has secured new credit facilities totaling $150 million in term loan facilities, a $20 million delayed draw term loan facility, and a $20 million revolving credit facility. These facilities will be used to repay the company's existing debt of $150 million, which is due under a senior secured credit agreement with Silicon Valley Bank [1].

The new financing agreement includes a governance structure that appoints Steven F. Mayer, a seasoned executive with extensive governance experience, to Accuray's Board of Directors. Mayer previously served as the Executive Chairman of Grifols, SA, and Co-Head of Global Private Equity at Cerberus Capital Management, L.P. [1].

Accuray's CEO, Suzanne Winter, expressed optimism about the new capital structure. "Our expanded solution portfolio is the strongest in our company's history," she said. "I am very pleased with the new financing agreement, which positions Accuray well to execute on the long-term growth strategies we have laid out and helps provide the necessary resources to further invest in key business areas" [1].

The company has also issued warrants to certain lenders as part of the financing agreement. These warrants include premium warrants with an exercise price of $1.68 per share, penny warrants with an exercise price of $0.01 per share, and delayed draw term loan premium and penny warrants [1].

The new financing structure is expected to enhance liquidity and provide greater operational flexibility for Accuray, positioning the company to continue its innovation in radiation therapy solutions and expand its market reach [1].

References:

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