IRVINE — Sientra Inc., a troubled maker of aesthetics products, isn’t giving up its goal to make itself look better.
On Feb. 12, it filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware and said it was seeking a buyer.
In the meantime, it said it has secured $22.5 million of new debtor-in-possession financing from existing lenders to support ongoing operations during the sale process. The debtor-in-possession financing will also include a “roll up” of $67.5 million of Sientra’s prepetition debt obligations.
Sientra, which reported having about 300 employees a year ago, plans to continue operations.
“Our goal is to emerge from this process with increased financial stability and positioned for long-term success under new ownership, and we are very encouraged that multiple parties have expressed interest in an acquisition of Sientra,” Chief Executive Ron Menezes said in a statement.
“We look forward to the opportunity to become part of an organization that understands the value of our broad product portfolio and legacy in plastic surgery.”
Sientra (Nasdaq: SIEN), which was founded in 2006, went public in 2014 and reached a split adjusted $250 a share in 2018.
Since then, it’s continued a downward spiral.
After the bankruptcy news, shares plunged 66% to 17 cents each.
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The company, which moved to Irvine a couple of years ago from Santa Barbara, calls itself a “medical aesthetics company exclusively focused on plastic surgeons.”
The addressable market for breast augmentation and reconstruction is $14 billion over a five-year period until 2028, while toxin/filler is $11 billion, Sientra said.
Its products include round and shaped breast implants, breast tissue expanders and a fat transfer system.
Sientra has been able to grow revenue, which climbed 12% to $90.3 million in 2022. It had 304 employees as of Dec. 31, 2022.
It also reported a $59.3 million loss in 2022, narrower than the $73.3 million loss in 2021. Its biggest expenditures were sales and marketing, $55 million, followed by general and administrative costs, $41.5 million.
Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones are serving as legal counsel to Sientra during its bankruptcy case, while Stifel/Miller Buckfire is serving as investment banker and Berkeley Research Group LLC is serving as financial adviser.
