Outset Medical Secures Up to $300 Million in Debt Financing

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Outset Medical, Inc. (Nasdaq: OM) (“Outset”), a medical technology company pioneering first-of-its-kind technology to reduce the cost and complexity of dialysis, today announced that it has entered into two credit facilities first-rank guarantees with investment subsidiaries managed by SLR Capital Partners, LLC (“SLR”) which collectively provide for borrowings of up to $300 millionincluding up to one $250 million term loan facility and up to $50 million asset-based revolving credit facility.

“We are pleased to have completed this non-dilutive debt financing on favorable terms, allowing us to further strengthen our balance sheet,” said Leslie Trigg, Chairman and CEO of Outset. “This agreement provides additional support and flexibility as we move forward in our mission to bring a technology-based, patient-centered approach to dialysis in both acute and home settings.”

The term loan facility includes a commitment $200 million which can be brought to $250 million and the revolving asset-backed credit facility includes a $25 million which can be brought to $50 million, with any increase subject to certain milestones and SLR credit approval. The maturity date of the credit facilities is November 1, 2027. The annual interest rate is equal to the one-month SOFR (subject to a floor of 2.75%), plus (1) 5.15% under the term loan facility and (2) 3, 20% asset-based revolving credit facility. The term loan facility provides for at least 48 months of interest-only payments at closing, which can be extended to 54 months subject to certain financial milestones. Draw $100 million financing under the term loan facility at closing. An additional amount of $100 million is available to borrow under the credit facilities at closing. Concurrent with securing these facilities from SLR, Outset withdrew its existing cash-secured credit facility from Bank of Silicon Valley.

Armentum Partners served as financial advisor and Cooley LLP served as legal counsel to Outset on the transaction. Additional details regarding the foregoing financing are set forth in Outset’s current report on Form 8-K, filed today with the SECOND.

About Outset Medical, Inc.

Outset is a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis. The Tablo hemodialysis system, cleared by the FDA for hospital-to-home use, represents a significant technological advancement that transforms the dialysis experience for patients and operationally simplifies it for providers. Tablo serves as a single enterprise solution that can be used across the continuum of care, allowing dialysis to be administered anytime, anywhere, by anyone. Integration of water purification and on-demand dialysate production enables Tablo to serve as a dialysis clinic on wheels, with two-way wireless data transmission and a proprietary data analysis platform fueling a new holistic approach to dialysis care. Tablo is a registered trademark of Outset Medical, Inc.

Forward-looking statements

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, including statements regarding the availability of future borrowings under the credit facilities. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause actual results and other events to differ materially from those expressed or implied by such statements. . These risks and uncertainties include the risks described in the Risk Factors section of Outset’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the US Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof and should not be relied upon unduly. Outset disclaims any obligation to update these forward-looking statements.

Contact:

Jim Mazzola

Email: [email protected]

(C) 2022 electronic news edition, source ENP Newswire


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