Subsequent Event

9 Months Ended

Sep. 30, 2018

Subsequent Event [Line Items]

Subsequent Event

Subsequent Event

In October 2018, the Company entered into an amended and restated loan agreement with CRG Servicing LLC and related lending parties under which the new lenders agreed to extend term loans to the Company in an aggregate principal amount of up to $100.0 million, excluding any additional borrowings attributable to the Company's exercise of the option to defer payment on a portion of the interest that would accrue as additional borrowings under the agreement. The amended term loan is due and payable on September 30, 2024. At closing, the Company received net proceeds of approximately $7.8 million, pursuant to borrowings of $60.0 million under the new facility, net of repayment of the Company's existing term loan facility to its original lenders of $50.4 million, and transaction-related fees and expenses. Of the $40.0 million in additional borrowing capacity, the Company has the option to borrow $20.0 million until June 30, 2019 and an additional $20.0 million until March 30, 2020, subject to the achievement of certain product and service revenue thresholds prior to December 31, 2019. The amended and restated loan agreement contains liquidity and minimum annual revenue requirements, as well as conditions customary to borrowings, events of default and negative covenants.

Interest on the term loan of 10.5% is payable quarterly, of which 3% may be deferred during the six year term at the Company's option and repaid at maturity together with the principal. The Company paid an upfront fee of 0.5% of the aggregate principal amount of the initial borrowing under the facility, and will pay a fee equal to 2% of the total amount borrowed under the term loan agreement at the time the principal is repaid.

                In connection with the new facility, warrants to purchase an aggregate of 341,578 shares of common stock with an exercise price per share of $21.12 were issued to the lenders, and, in the event additional amounts are drawn under the new facility, additional warrants will be issued on each subsequent draw date for 0.3% of the fully-diluted shares then outstanding. The exercise price for additional warrants will be set at a 25% premium to the average closing trading price for the 30-day trading period as of the date immediately before the applicable draw date.