Sanuwave Announces Strategic Debt Refinancing with New Credit Facility

Rhea-AI Summary

Sanuwave Health (NASDAQ: SNWV), a leading provider of FDA-approved wound care products, has successfully refinanced its debt through a new credit facility with J.P. Morgan. The facility includes a $23 million four-year term loan and a $5 million two-year revolving credit facility backed by accounts receivable.

The new arrangement replaces the company's previous $27.5 million debt facility with NH Expansion. At closing, Sanuwave drew approximately $24 million total, including $1 million from the revolving facility. Both facilities carry an interest rate of SOFR +350bp with no prepayment penalties. The remaining balance and transaction costs of approximately $4.8 million were paid using operational cash flow and proceeds from a recent patent sale.

Positive

• None.

Negative

• Company still maintains substantial debt of $24M
• Additional transaction and initiation costs of $1.3M incurred
• Required sale of intravascular shockwave patents to help fund the refinancing

Insights

Financial Analyst

Sanuwave's refinancing reduces interest burden, improves cash flow, and demonstrates banking confidence in the company's financial health.

Sanuwave's new $28 million credit facility with J.P. Morgan represents a significant financial restructuring that strengthens the company's position in several ways. The deal includes a $23 million four-year term loan and a $5 million revolving credit facility, of which $1 million has been initially drawn.

The most immediate benefit is the reduced interest rate. While the previous rate wasn't specified, the new SOFR +3.50% pricing suggests a meaningful reduction based on management's comments. This will directly improve cash flow by lowering interest expenses, enhancing Sanuwave's financial flexibility.

The refinancing also reduced total debt by approximately $3.5 million, as the company paid down part of its previous $27.5 million facility using operational cash flow and proceeds from its recent patent sale. This demonstrates management's commitment to deleveraging while maintaining adequate liquidity.

Perhaps most significant is the elimination of prepayment penalties, giving Sanuwave the freedom to accelerate debt reduction when excess cash is available without incurring additional costs. This aligns with management's stated goal of paying down debt from operating cash flows.

The relationship with J.P. Morgan represents a strong vote of confidence in Sanuwave's financial stability. Major financial institutions typically impose rigorous underwriting standards, suggesting J.P. Morgan sees Sanuwave as creditworthy with sustainable cash flows. This banking relationship could provide additional benefits beyond the current facilities as the company continues to grow.

This refinancing demonstrates proactive financial management and positions Sanuwave to allocate more resources toward growth initiatives rather than debt servicing, potentially accelerating their development in the wound care market.

Credit facility from J.P. Morgan consists of a four-year term loan of $23 million and a two-year $5 million revolving credit facility backed by accounts receivable

Both the term loan and revolver have an interest rate of SOFR +350bp

The Company drew approximately $1 million from the revolver at commencement, resulting in total outstanding debt under the new facility of approximately $24 million.

Company announces the repayment in full of NH Expansion debt facility with new credit facility from J.P. Morgan and cash on hand

EDEN PRAIRIE, Minn., Sept. 26, 2025 (GLOBE NEWSWIRE) -- Sanuwave Health, Inc. (the "Company" or "Sanuwave”) (NASDAQ: SNWV), a leading provider of next-generation FDA-approved wound care products, today announced the successful refinancing of its $27.5 million debt facility with NH Expansion Credit Fund Holdings LP (“NH Expansion”) with a new secured credit facility from J.P. Morgan consisting of a $23.0 million term loan, which amortizes over four years and a two-year $5.0 million receivables backed revolving credit facility from which the Company drew approximately $1.0 million at closing. Both facilities have an interest rate of SOFR (Secured Overnight Financing Rate) +350bp and neither facility has any prepayment penalties.

The use of proceeds for the $24 million borrowing at closing was the partial repayment of the NH Expansion debt facility. The remaining $3.5 million owed on the NH Expansion debt facility and additional transaction and initiation costs (including costs to close out the NH Expansion debt facility) of approximately $1.3 million were repaid using cash accumulated from the Company’s operations and from its sale of certain intravascular shockwave patents disclosed in the Company’s Current Report on 8-K filed on August 21, 2025.

“This refinancing marks a pivotal step in strengthening Sanuwave’s financial position,” said Sanuwave CEO Morgan Frank. “The significant reduction in our interest rate, the reduction of our overall debt load, and a move to a set of ‘no prepayment penalty’ terms all position us to better generate cash flow in support of our ongoing mission to pay down our debt out of operating cash flow. We could not ask for a better lender than J.P. Morgan, whose reputation for global leadership in banking needs no introduction. They have already been a great help, and we look forward to working with them going forward.”

Additional details regarding the terms of the new secured credit facility will be included in a Current Report on Form 8-K that the Company intends to file with the Securities and Exchange Commission within four business days.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to our new secured credit facility, our commercial banking facilities, future financial results, production expectations, and plans for future business development activities. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are risks associated with regulatory oversight, the Company’s ability to manage its capital resources, competition and the other factors discussed in detail in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement, except as may be required by applicable law.

Contact: investors@sanuwave.com

FAQ

What are the terms of Sanuwave's (SNWV) new credit facility with J.P. Morgan?

The facility includes a $23M four-year term loan and a $5M two-year revolving credit facility, both with an interest rate of SOFR +350bp and no prepayment penalties.

How much did Sanuwave (SNWV) reduce its debt through the refinancing?

Sanuwave reduced its total debt from $27.5M to $24M, representing a $3.5M reduction in overall debt load.

What is the interest rate on Sanuwave's new J.P. Morgan credit facility?

Both the term loan and revolving credit facility carry an interest rate of SOFR (Secured Overnight Financing Rate) plus 350 basis points.

How did Sanuwave fund the remaining balance of its previous NH Expansion debt?

The remaining $4.8M (including transaction costs) was paid using cash from operations and proceeds from the sale of intravascular shockwave patents.

What is the purpose of Sanuwave's (SNWV) debt refinancing?

The refinancing aims to strengthen Sanuwave's financial position through lower interest rates, reduced debt load, and more flexible terms to better generate cash flow for debt repayment.