T2 Biosystems, Inc. Announces $50M Credit Facility
January 05 2017 - 6:30AM
-- Retiring Former Debt Facility; Significantly
Decreases Near-Term Cash Needs --
T2 Biosystems, Inc. (NASDAQ:TTOO), a company developing innovative
diagnostic products that improve patient health and deliver a
strong economic return to healthcare institutions, today announced
that it has entered into a $50 million debt facility agreement with
CRG LP. The new facility consists of an initial draw of $40 million
and the ability to borrow an additional $10 million through and
including July 27, 2018, based on certain operating milestones.
The company is using approximately $28 million of the initial
term loan proceeds to retire existing debt facilities and
promissory notes and, subject to payment of expenses related to the
transaction, intends to retain the remainder of the initial term
loan proceeds, plus any additional amounts borrowed, for general
corporate purposes, working capital and the company’s strategic
priorities. The new credit facility includes terms that greatly
diminish cash debt service in the coming periods while the company
solidifies its foundation of installed T2 Magnetic Resonance
(T2MR®) base technology and works toward delivering the
T2BacteriaTM Panel to the market, which is anticipated to occur
later this year.
“Today’s announcement with CRG, coupled with the recent $40
million investment by Canon Partners U.S.A and the funding received
through other partnerships including the partnership with Allergan,
has put T2 Biosystems in a strong financial position to help fund
our future growth and drive value for our shareholders,” said John
McDonough, president and chief executive officer of T2 Biosystems.
“Further, we remain confident in the business’ strategic direction
and are squarely focused on executing against our key priorities –
growing our customer base, introducing new products to expand our
suite of services, expanding our partnership pipeline and
highlighting the power of our technology through customer success
stories and real-world data.”
“We are delighted to be partnering with T2 Biosystems – the
leader in whole blood-based sepsis testing,” said Nate Hukill,
president of CRG. “We believe that as a result of their innovative
T2MR platform, strong product pipeline and compelling recent
customer successes, T2 Biosystems has an opportunity to transform
the current landscape of diagnostic testing, and we are excited to
help support those efforts.”
Additional details regarding this financing will be available in
the Company’s Current Report on Form 8-K to be filed with the
Securities and Exchange Commission.
WBB Securities LLC acted as financial advisor on the
transaction.
About T2 Biosystems T2 Biosystems is
focused on developing innovative diagnostic products to improve
patient health. With two FDA-cleared products targeting sepsis
and a range of additional products in development, T2
Biosystems is an emerging leader in the field of in
vitro diagnostics. The Company is utilizing its proprietary T2
Magnetic Resonance platform, or T2MR, to develop a broad set of
applications aimed at lowering mortality rates, improving patient
outcomes and reducing the cost of healthcare by helping medical
professionals make targeted treatment decisions earlier. T2MR
enables the fast and sensitive detection of pathogens, biomarkers
and other abnormalities in a variety of unpurified patient sample
types, including whole blood, eliminating the time-consuming sample
prep required in current methods. For more information, please
visit www.t2biosystems.com.
About CRGFounded in 2003, CRG (previously known
as Capital Royalty L.P.) is a healthcare-focused investment firm
that delivers pioneering growth capital financing solutions to the
global healthcare industry. With over $2.5 billion of assets under
management across 40 healthcare investments, CRG provides growth
capital to healthcare companies primarily through structured debt
and senior secured loans. CRG works across the spectrum of
healthcare products, technologies and services and targets
investment sizes ranging between $20 million and $300 million. The
firm partners with innovative, commercial-stage healthcare
companies that address large, unmet medical needs who are seeking
flexible financing solutions with a committed, value-add partner to
achieve their growth objectives. CRG is headquartered in Houston,
Texas with offices in Boulder, Colorado and New York, New York.
Please visit us at www.crglp.com.
Forward-Looking Statements This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements
contained in this press release that do not relate to matters of
historical fact should be considered forward-looking statements.
These forward-looking statements are based on management's current
expectations. These statements are neither promises nor guarantees,
but involve known and unknown risks, uncertainties and other
important factors that may cause actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to, the
performance of the Company's diagnostic products and the ability to
bring such products to market. These and other important factors
could cause actual results to differ materially from those
indicated by the forward-looking statements made in this press
release. For more information on risk factors for T2
Biosystems, Inc.’s business, please refer to the Company’s Annual
Report on Form 10-K, filed with the Securities and Exchange
Commission on March 9, 2016, under the heading “Risk
Factors,” and other filings the Company makes with
the Securities and Exchange Commission from time to
time. Any such forward-looking statements represent
management's estimates as of the date of this press release. While
the Company may elect to update such forward-looking statements at
some point in the future, it disclaims any obligation to do so,
even if subsequent events cause its views to change. These
forward-looking statements should not be relied upon as
representing the Company's views as of any date subsequent to the
date of this press release.
Contacts for T2 Biosystems:
Media Contact:Susan Heins, Pure
Communicationssusan@purecommunicationsinc.com864-346-8336
Investor Contact:Matt Clawson, Pure
Communicationsmatt@purecommunicationsinc.com949-370-8500
Contacts for CRG:
Luke DüsterManaging Director713.209.7361lduster@crglp.com
or
CRG Media Contact:Nick Rust212.279.3115 ext.
252nrust@prosek.com
Related Linkshttp://www.crglp.com
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