Ropes & Gray Represents Patient Square Capital in Eargo Strategic Investment

In The News
June 28, 2022

Ropes & Gray represented Patient Square Capital in a strategic investment in hearing loss medical device company Eargo, Inc. to raise up to $125 million through the sale of senior secured convertible notes.

Under the agreement announced on June 27, within six months of Patient Square Capital’s first tranche investment, Eargo expects to undertake a rights offering under which the stockholders can buy their pro rata share of $375 million newly issued shares of common stock at $0.50 per share. Proceeds from a rights offering are intended to be used to redeem the notes and for general corporate purposes. In the event the rights offering is not fully subscribed, the remaining notes not redeemed in the rights offering will convert into shares of common stock.

The Ropes & Gray team was led by capital markets and M&A partner Tom Fraser and private equity partners Jay Freedman and Alex Zeltser and included tax partner Ben Rogers, litigation & enforcement partners Andrew O’Connor and Dan McCaughey, capital markets and M&A partner Tom Holden, private equity partner Sam Badawi, business restructuring partner Ryan Dahl, tax counsel Sara Clevering and private equity associate Patrick Prin.