Tandem Diabetes Care Announces Full Repayment of Outstanding CRG Debt
August 08 2018 - 4:05PM
Business Wire
Tandem Diabetes Care®, Inc. (NASDAQ: TNDM), a medical device
company and manufacturer of the only touchscreen insulin pumps with
continuous glucose monitoring (CGM) integration, today announced
that it has fully repaid its term loan made by Capital Royalty
Partners II L.P. and its affiliated funds (CRG). The balance of the
outstanding debt plus accrued interest owed to CRG was
approximately $83.8 million, plus approximately $5.0 million in
associated financing fees that became due upon repayment. The
interest rate on the term loan was 11.5 percent.
“The repayment of our outstanding loan and the elimination of
our interest burden marks an extraordinary transformation of our
balance sheet,” said Kim Blickenstaff, President and Chief
Executive Officer. “This allows us to dedicate our financial
resources to the achievement of our profitability objectives and
advance our new product offerings to improve the lives of people
with diabetes.”
As of June 30, 2018, the Company had $96.5 million in cash, cash
equivalents, short-term investments and restricted cash. The
Company generated an additional $115.0 million in gross proceeds
from a public offering of common stock completed on August 7, 2018,
before deducting underwriting discounts and commissions and other
offering expenses. Proceeds from this recent equity offering were
used for the repayment of the Company’s outstanding obligations to
CRG.
About Tandem Diabetes Care, Inc.
Tandem Diabetes Care, Inc. (www.tandemdiabetes.com) is a medical
device company dedicated to improving the lives of people with
diabetes through relentless innovation and revolutionary customer
experience. Tandem takes an innovative, user-centric approach to
the design, development and commercialization of products for
people with diabetes who use insulin. Tandem manufactures and sells
the t:slim X2™ Insulin Pump with Basal-IQ™ Technology. The t:slim
X2 Pump is capable of remote feature updates using a personal
computer, and is the first insulin pump designated as compatible
with integrated continuous glucose monitoring (iCGM) devices.
Tandem is based in San Diego, California.
Tandem Diabetes Care is a registered trademark, and t:slim X2
and Basal-IQ are trademarks of Tandem Diabetes Care, Inc.
Forward Looking Statement
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that concern matters that involve risks and uncertainties
that could cause actual results to differ materially from those
anticipated or projected in the forward-looking statements. These
forward-looking statements relate to, among other things, the
anticipated growth objectives of the Company and its ability to
reach profitability. The Company’s actual results may differ
materially from those indicated in these forward-looking statements
due to numerous risks and uncertainties. For instance, the
Company’s ability to achieve projected financial results will be
impacted by the Company’s ability to obtain regulatory approval for
new products and products under development and the timing of any
such approvals; market acceptance of the Company’s existing
products and products under development by physicians and people
with diabetes; and the potential that newer products that compete
with the Company’s products, or other technological breakthroughs
for the monitoring, treatment or prevention of diabetes, may render
the Company’s products obsolete or less desirable. Other risks and
uncertainties include the Company’s inability to manufacture
products in commercial quantities at an acceptable cost and in
accordance with quality requirements; the Company’s inability to
contract with additional third-party payors for reimbursement of
the Company’s products; uncertainty associated with the development
and approval of new products generally; possible future actions of
the FDA or any other regulatory body or governmental authority; as
well as other risks identified in Tandem’s most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q,
respectively, and other documents that we file with the Securities
and Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this release. Tandem undertakes no obligation to
update or review any forward-looking statement in this press
release because of new information, future events or other
factors.
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version on businesswire.com: https://www.businesswire.com/news/home/20180808005695/en/
Tandem Diabetes Care, Inc.Media:Steve Sabicer,
714-907-6264ssabicer@thesabicergroup.comorInvestors:Susan Morrison,
858-366-6900 x7005smorrison@tandemdiabetes.com
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