đź‘“At a Glance
Borrower: Spectral AI
Lender: Avenue Capital Group
Deal Size: $15.0 million
Structure: Senior secured term loan with milestone-triggered second tranche and equity-linked enhancements (warrants + conversion rights)
Rate: Variable - greater of Prime + 5.25% or 12.75%
Term: 36 months
Use of Proceeds: Accelerate product commercialization efforts
Source: Press Release
đź“·Borrower Snapshot
Sector: Health Care
Subsector: Health Care Equipment & Supplies
Ownership: Public
Commercial Stage: Pre-commercial revenue
Business Overview: Spectral AI is a predictive artificial intelligence company focused on improving wound care through advanced imaging and machine learning.
Its DeepView® technology enables real-time, non-invasive assessment of wound healing potential, with initial applications targeting burns and diabetic foot ulcers.
⚙️Structure & Terms
Source: SEC 8-K
Commitment: $15.0 million
Tranche 1: $8.5 million funded at close
Tranche 2: $6.5 million contingent on milestones; available until June 30, 2026
Milestones: Regulatory approval, BARDA commitment, min. net cash proceeds from financing
Interest-only Period: 15 month interest only w/ ability to extend interest only an additional 9 months if Tranche 2 funded
Maturity: March 1, 2028
Rate: Variable - greater of Prime + 5.25% or 12.75%
Commitment Fee: 1% ($150k)
Final Payment Fee: 5% ($750k)
Prepayment Fee: 3%, 2%, 1%
Other:
- $1.275 million in warrants (8.5% warrant coverage)
- Equity investment right: up to $1.0 million
- Optional $2.0 million conversion right at 120% of warrant exercise price
Covenants: No financial performance covenants
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