Increased Borrowing Capacity to Provide Flexibility for
SAN DIEGO--(BUSINESS WIRE)--
Tandem Diabetes Care®, Inc. (NASDAQ: TNDM) today announced the amendment
of its term loan facility with Capital Royalty Partners II, L.P. and its
affiliate funds ("CRG"), which will provide the Company access to $50
million in addition to the $30 million borrowed from CRG in January
2013. Under the terms of the amended agreement, Tandem is required to
draw $15 million in January 2016 and has a one-time option to access up
to an additional $35 million on or before December 31, 2016. The
interest rate, interest only payment period, and maturity date under the
loan facility were unchanged by the amendment.
"With our 2015 accomplishment of approximately $73 million in sales, and
continued anticipated growth of at least 40 percent in 2016, our
arrangement with CRG provides us flexibility to best support the needs
of our rapidly growing business," said Kim Blickenstaff, Tandem's
President and Chief Executive Officer. "We will continue to invest in
advancing our growth through research and development and
commercialization efforts, as well as in the expansion of our
manufacturing capacity, to continue delivering innovative products to
improve the lives of people with diabetes."
At December 31, 2015, the Company had approximately $73 million in cash,
cash equivalents and short-term investments, compared to approximately
$84 million at September 30, 2015. The Company's estimated sales for
2015, and its estimated cash, cash equivalents and short-term
investments as of December 31, 2015 are preliminary and subject to
About Tandem Diabetes Care, Inc.
Tandem Diabetes Care, Inc. (www.tandemdiabetes.com)
is a medical device company with an innovative, user-centric and
integrated approach to the design, development and commercialization of
products for people with diabetes who use insulin. The Company
manufactures and sells the t:slim® Insulin Pump, the slimmest and
smallest durable insulin pump currently on the market, the t:flex®
Insulin Pump, the first pump designed for people with greater insulin
requirements, and the t:slim G4™ Insulin Pump, the first CGM-enabled
pump with touch-screen simplicity. Tandem is based in San Diego,
About CRG L.P.
Founded in 2003, CRG (previously known as Capital Royalty L.P.) is a
healthcare-focused investment firm with approximately $2 billion of
assets under management that provides capital to healthcare companies
primarily through structured debt and senior secured loans. CRG works
across the spectrum of life science products and technologies and
targets investment sizes ranging between $20 million and $200 million.
The firm partners with commercial-stage healthcare companies to provide
flexible financing solutions so they can achieve their growth
objectives. CRG is headquartered in Houston, Texas with offices
in Boulder, Colorado and New York City.
Follow Tandem Diabetes Care on Twitter @tandemdiabetes, use #tslim,
#tflex, #tslimG4, #tconnect, #tsimulator and $TNDM.
Diabetes Care on Facebook at www.facebook.com/TandemDiabetes.
Tandem Diabetes Care on LinkedIn at https://www.linkedin.com/company/TandemDiabetes.
t:slim, t:flex and Tandem Diabetes Care are registered trademarks, and
t:slim G4 is a trademark 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 the anticipated rate of growth of the Company's sales for
2016, the Company's projected sales for the fourth quarter and full year
2015, the Company's balance of cash, cash equivalents and short-term
investments as of December 31, 2015, the Company's expectations
regarding its future borrowings under the amended loan facility with
CRG, and the Company's use of proceeds from any such borrowings. The
Company's actual results may differ materially from those anticipated or
projected in these forward-looking statements due to numerous risks and
uncertainties. For instance, as of the date of this release the
Company's financial results for the fourth quarter and full year 2015
are preliminary and subject to adjustment. Furthermore, additional funds
may not be available under the term loan agreement with CRG if the
Company does not meet certain specified minimum revenue requirements or
if the Company is not in compliance with other covenants under the terms
of the applicable loan agreement, and the successful commercialization
of the Company's products may be negatively impacted by lack of market
acceptance by physicians and people with diabetes. 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; possible delays in the Company's product development programs;
possible future actions of the U.S. Food and Drug Administration or any
other regulatory body or governmental authority and other risks
identified in the Company's most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q, as well as other documents that the
Company files with the Securities and Exchange Commission. Investors 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160112005580/en/
The Sabicer Group
Steve Sabicer, 714-907-6264
Diabetes Care, Inc.
Susan Morrison, 858-366-6900 x7005
Source: Tandem Diabetes Care, Inc.
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