Allurion Technologies, dedicated to combating obesity worldwide, recently finalized a $48 million convertible senior secured note financing in collaboration with RTW Investments, LP. The funds will primarily be allocated to repay the company's current term loan with Fortress Credit Corp., subsequently reducing interest expenses and augmenting operational flexibility. Noteworthy features of the financing include a reduced interest rate of 6% and an extended maturity date to April 2031, fostering a more favorable financial landscape for Allurion's future endeavors. Moreover, the agreement allows for interest payments to be made in-kind for the initial three years, optimizing resource allocation and bolstering the company's financial resilience.
This strategic transaction, marked by the partnership between Allurion and RTW Investments, underscores a shared commitment to revolutionizing obesity management. Dr. Shantanu Gaur, Founder and CEO of Allurion, expressed confidence in the company's trajectory, citing impressive clinical outcomes and sustained growth in procedural volume across global markets. Roderick Wong, M.D., Managing Partner and Chief Investment Officer of RTW Investments, LP, echoed this sentiment, emphasizing the anticipation surrounding Allurion's upcoming FDA trial results. With a focus on innovation and long-term partnership, this financing marks a significant step forward in Allurion's mission to combat obesity through cutting-edge solutions and strategic collaborations.
