T2 Biosystems, Inc., 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.”