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Accuray Completes Financing Transaction with TCW

In a significant move aimed at fortifying its financial foundation, Accuray Incorporated (NASDAQ: ARAY) has officially completed a financing transaction with TCW Asset Management Company LLC. This partnership, which was green-lit by stockholders during a special meeting on October 6, 2026, represents a pivotal moment for the company.

The deal effectively reduces Accuray’s debt burden while introducing new capital to enhance its operational capabilities. Notably, TCW remains Accuray’s primary lender and largest shareholder, reflecting their commitment to the company's future. Alongside the transaction, certain financial covenants have also been waived until December 31, 2027, allowing Accuray more flexibility in navigating its strategic transformation.

Key Features of the Transaction

1. Debt Reduction: TCW has exchanged $40 million of its term loan for convertible preferred stock, significantly diminishing Accuray's outstanding liabilities.
2. New Equity Investment: TCW added an additional $15 million cash investment, which has also been converted into preferred stock, strengthening the financial support available to Accuray.
3. Covenant Waivers: The deal suspends specific financial covenants linked to Accuray’s term loan, with the first covenant test set for March 31, 2028. This maneuver is designed to provide the company necessary room to operate and innovate without immediate financial strain.
4. Additional Liquidity: The arrangement also includes the option for Accuray to access a delayed draw term loan of up to $5 million under certain conditions, adding a layer of liquidity to support ongoing operations.
5. Governance Restructuring: The size of the board of directors has been decreased from eight to seven members, with TCW securing the right to appoint two members. This change enhances TCW's influence in the company while also introducing Richard A. Meier as a new independent director.

A Commitment to Growth

Accuray's CEO, Steve La Neve, emphasized the importance of this transaction, stating, "Completing this transaction is an important milestone for Accuray as it strengthens our balance sheet. As we move forward, we continue to stay focused on our mission and on delivering innovative technology and service to our customers and their patients."

This transaction is part of Accuray's broader strategy, termed Transformation Phase II, focused on reinforcing its competitive standing and fostering long-term growth. Key priorities include:

• - Advancing unique and differentiated innovation in radiation therapy.
• - Lowering overall costs to improve operational efficiency.
• - Expanding market reach via both direct and partner channels.

Future Directions

By securing this deal, Accuray positions itself as a stronger competitor in the radiation therapy sector, delivering on its commitment to enhance patient care through advanced technological solutions. Accuray's dedication to driving innovation while managing financial health is evident through this strategic agreement.

In the days to come, the company will file a Current Report on Form 8-K detailing the completion of this transaction with the Securities and Exchange Commission. Investors and stakeholders are encouraged to keep an eye on Accuray's developments as it navigates this crucial phase.

For more insights into Accuray's operations, visit Accuray's Website or follow them on social media platforms like Facebook, LinkedIn, Twitter, and YouTube.

About Accuray

Accuray is dedicated to harnessing the full potential of radiation therapy to benefit as many patients as possible. With a focus on innovation, the company designs solutions that cater to a diverse range of treatment needs, thus enabling healthcare providers to deliver efficient care. Headquartered in Madison, Wisconsin, Accuray operates on a global scale, continually striving to improve the lives of patients through groundbreaking technology.

About TCW

Founded over fifty years ago, TCW is an asset management firm recognized for its expertise across various investment strategies, including fixed income and equities. TCW's methodical, research-focused approach allows them to build portfolios that seek enduring value for their clients, demonstrating a deep commitment to understanding market dynamics.

In conclusion, the successful completion of this transaction between Accuray and TCW sets the foundation for a promising future marked by innovation and financial stability.