L.O.T.W. #142 - Myomo mobilizes with New Growth Capital Term Loan
Structured term loan from Avenue Capital refinances existing credit facility and provides additional runway
In November 2025, Myomo, Inc. entered into a term-loan agreement with Avenue Capital, Inc. for up to $17.5 million, of which $12.5 million was funded at close. The nearly four-year facility matures in 2029 and features a 18-month interest-only period (extendable by 6 months), followed by principal + interest amortization. The loan is secured by substantially all of Myomo’s assets and carries customary affirmative and negative covenants and three financial covenants.
👓At a Glance
Origination Date: November 4, 2025
Borrower: Myomo, Inc. and subsidiaries
Lender: Avenue Capital, Inc.
Deal Size: $17.5 million plus non-committed $10 million “discretionary tranche 3”
Structure: Multi-tranche term loan; first tranche of $12.5 million funded at close; second tranche available from November 4, 2026 and May 4, 2027; third non-committed tranche available between January 1, 2027 and December 31, 2027
18 month interest only, extendable to 24 months upon funding of tranche 2
Rate: Variable, greater of Prime + 4.75%, and 11.75%
Term: ~43 months
Use of Proceeds: Refinance existing SVB credit facility; general corporate purposes
Source: Press Release
📷Borrower Snapshot
Sector: Health Care
Subsector: Health Care Equipment and Supplies
Commercial Stage: Revenue generating; LTM EBITDA (-)
Business Overview: Myomo, Inc. is a medical robotics company that develops and commercializes wearable neuro-muscular orthotics for individuals with upper-limb paralysis or weakness resulting from stroke, nerve injury, or neuromuscular disease. Its flagship product, the MyoPro® powered brace, uses EMG signals from a patient’s own muscles to restore arm and hand function, enabling greater independence in daily activities. The company operates a direct-to-consumer model supported by a network of clinicians and rehabilitation centers, and continues to expand coverage with both commercial and government payers. With rising utilization trends and growing reimbursement traction, Myomo is working to scale its assistive technology platform and broaden access to the large population of patients living with impaired upper-limb mobility.
⚙️Structure & Terms
Source: SEC 8-K
Commitment: $17.5 million multi-tranche term loan
$12.5 million available at close
$5.0 million
$10.0 million non-committed discretionary tranche 3
Maturity: June 1, 2029
Collateral: First priority all asset lien
Rate: Variable, greater of Prime + 4.75%, and 11.75%
Conversion Option: Lender has right to convert up to $3 million of tranche 1 and up to $1.0 million of tranche 2 into common stock at a price per share equal to 120% of exercise price of the warrant (see below)
Right to Invest: Lender may participate in certain equity financing transactions in aggregate up to $1 million
Fees & Warrant:
Commitment Fee - 1% of $17.5 million or $175k
Prepayment Fee - 3.0% prior to 1st Anniversary, 2.0% prior to 2nd Anniversary; 1.0% thereafter
Final Payment - 3.25%
Warrant - Lender granted warrant to purchase up to $1.3 million worth of shares of common stock at price per share equal to lesser of $0.96 and price of bona fide round of equity financing before June 30, 2026
Financial Covenant:
Min. Cash - $2.5 million
Min. L3M Revenue - 75% of projected L3M Revenue, tested monthly
Cash Burn - Close → December 31, 2026, T6M burn no more negative than 150% of T6M projected cash burn; January 1, 2027 → maturity, T6M burn no more negative than 150% of projected burn, or negative $2 million