Tandem Diabetes Care Announces $250M Convertible Notes Offering

Tandem Diabetes Care, Inc. has announced its intention to offer $250.0 million aggregate principal amount of its convertible senior notes due 2029 in a private placement. The company also plans to grant the initial purchasers of the notes an option to purchase up to an additional $37.5 million principal amount of notes. The notes will be general unsecured obligations and will accrue interest payable semiannually in arrears.

Tandem expects to use the net proceeds from the offering, together with cash on hand, to pay the cost of capped call transactions, to repurchase certain of its 1.50% convertible senior notes due 2025, and to repurchase up to $30.0 million shares of its common stock in privately negotiated transactions. Additionally, the company plans to use a portion of the net proceeds from the sale of additional notes for general corporate purposes, including potential repurchases of the 2025 notes from time to time following the offering.

In connection with the pricing of the notes, Tandem expects to enter into privately negotiated capped call transactions with certain financial institutions to offset the dilution to its common stock as a result of any conversion of the notes.

Concurrently with the pricing of the notes, Tandem expects to enter into one or more privately negotiated transactions with holders of the 2025 notes to repurchase for cash certain of its 2025 notes. The terms of each note repurchase transaction will depend on a variety of factors.

The company also intends to use up to $30.0 million of the net proceeds from the offering to repurchase shares of its common stock from purchasers of notes in the offering in privately negotiated transactions.

It's important to note that the notes and any shares of Tandem’s common stock issuable upon conversion of the notes have not been and will not be registered under the securities act or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption.

Tandem Diabetes Care, Inc. is a global insulin delivery and diabetes technology company based in San Diego, California. It manufactures and sells advanced automated insulin delivery systems, including the Tandem mobi system and the t:slim x2 insulin pump, both of which feature control-iq advanced hybrid closed-loop technology.

As a result of these announcements, the company's shares have moved -1.9% on the market, and are now trading at a price of $30.11. For the full picture, make sure to review Tandem Diabetes Care's 8-K report.

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