Paragon 28 Announces New $150 Million Credit Facility Replacing Existing $90 Million Credit Facility
07 November 2023 - 10:05PM
Business Wire
Paragon 28, Inc. (NYSE: FNA) (“Paragon 28” or "Company”), a
leading medical device company exclusively focused on the foot and
ankle orthopedic market, today announced that it has received a new
$150 million credit facility from Ares Capital Corporation (“the
Facility”) to replace its existing $90 million senior credit
facility. The Facility is comprised of up to $100 million in term
loans, with $75 million drawn at close, and a $50 million revolving
credit facility, with $25 million drawn at close. The Facility is
non-dilutive without warrants or other equity-based instruments.
The Company’s September 30, 2023, pro forma liquidity is $147.0
million, including $97.0 million of pro forma cash and $50 million
of available borrowings under the Facility.
“We expect continued improvements in our earnings and cash flow
into 2024 and beyond, and the non-dilutive liquidity provided by
Ares reinforces P28’s pathway to cash flow break-even,” said Steve
Deitsch, Chief Financial Officer.
“We are excited to partner with Paragon 28, a truly innovative
and high growth company,” said Doug Dieter, Partner in Ares’ Credit
Group. “P28’s growth and leadership in the global foot and ankle
market is impressive, and we are pleased to support its ongoing
mission to improve patient outcomes.”
Further details regarding the Credit Agreement are included in
the Company’s Form 8-K filed with the U.S. Securities and Exchange
Commission on November 7, 2023.
About Paragon 28, Inc.
Based in Englewood, Colo., Paragon 28, is a leading medical
device company exclusively focused on the foot and ankle orthopedic
market and is dedicated to improving patient lives. From the onset,
Paragon 28® has provided innovative orthopedic solutions,
procedural approaches and instrumentation that cover a wide range
of foot and ankle ailments including fracture fixation, forefoot,
ankle, progressive collapsing foot deformity (PCFD) or flatfoot,
charcot foot and orthobiologics. The company designs products with
both the patient and surgeon in mind, with the goal of improving
outcomes, reducing ailment recurrence and complication rates, and
making the procedures simpler, consistent, and reproducible.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global
alternative investment manager offering clients complementary
primary and secondary investment solutions across the credit,
private equity, real estate and infrastructure asset classes. We
seek to provide flexible capital to support businesses and create
value for our stakeholders and within our communities. By
collaborating across our investment groups, we aim to generate
consistent and attractive investment returns throughout market
cycles. As of September 30, 2023, Ares Management Corporation's
global platform had approximately $395 billion of assets under
management, with approximately 2,800 employees operating across
North America, Europe, Asia Pacific and the Middle East. For more
information, please visit www.aresmgmt.com.
Forward Looking Statements
Except for the historical information contained herein, the
matters set forth in this press release are forward-looking
statements within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995, including,
but not limited to: Paragon 28’s potential to shape a better future
for foot and ankle patients and its estimated net revenue for full
year 2023. You are cautioned not to place undue reliance on these
forward-looking statements. Forward-looking statements are only
predictions based on our current expectations, estimates, and
assumptions, valid only as of the date they are made, and subject
to risks and uncertainties, some of which we are not currently
aware. Forward-looking statements should not be read as a guarantee
of future performance or results and may not necessarily be
accurate indications of the times at, or by, which such performance
or results will be achieved. These forward-looking statements are
based on Paragon 28’s current expectations and inherently involve
significant risks and uncertainties. Actual results and the timing
of events could differ materially from those anticipated in such
forward-looking statements as a result of these risks and
uncertainties. These risks and uncertainties are described more
fully in the section titled “Risk Factors” in Paragon 28’s filings
with the Securities and Exchange Commission (the “SEC”), including
Paragon 28’s annual report on Form 10-K filed with the SEC on March
2, 2023. Paragon 28 does not undertake any obligation to update
forward-looking statements and expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein. These forward-looking
statements should not be relied upon as representing Paragon 28’s
views as of any date subsequent to the date of this press release.
Paragon 28’s results for the quarter ended September 30, 2023, are
not necessarily indicative of our operating results for any future
periods.
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version on businesswire.com: https://www.businesswire.com/news/home/20231107167612/en/
Investor Contact: Matt Brinckman Senior Vice President,
Strategy and Investor Relations mbrinckman@paragon28.com
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