Treace secures up to $150 million in debt financing

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PONTE VEDRA, Fla., May 02, 2022 (GLOBE NEWSWIRE) — Treace Medical Concepts, Inc. (“Treace” or the “Company”) (Nasdaq: TMCI), a medical technology company driving fundamental change in the surgical treatment of hallux valgus (commonly known as bunions), today announced that it has entered into a new five-year, $150 million loan agreement with MidCap Financial, including up to $120 million in term loans and a $30 million revolving credit facility. Proceeds from the new term loan refinanced the Company’s existing $30 million term loan with CR Group LP. In addition, the new revolving credit facility will expand the Company’s revolving credit capacity and replace Silicon Valley Bank’s existing unutilized $10 million revolving credit facility.

“We are pleased to secure this non-dilutive debt financing on favorable terms, providing us with up to $150 million to further strengthen our balance sheet and provide financial flexibility as we execute our business strategies and drive growth,” said John T. Treace, CEO, Founder and Member of the Board of Directors of Treace. “We are committed to becoming the standard of care in bunion surgery and this funding provides us with a capital-efficient vehicle to continue to grow our market, invest in our business and gain significant market share.”

The Company’s new loan agreement includes a five-year maturity date for both the term loan and the revolving credit facility. The Company drew $54 million at closing and used a portion of the proceeds to refinance its existing $30 million credit facility. The annual interest rate is equal to the adjusted forward SOFR1 subject to a floor of 1% and a ceiling of 3%, plus (1) 6% for the term loan and (2) 4% for the revolving loan. The term loan provides for at least 48 months of interest only at closing, which can be extended to 60 months.

With the completion of this refinancing, the Company now has liquidity and access to liquidity of approximately $220 million.

Armentum Partners served as financial advisor to Treace on the transaction. Additional details regarding the foregoing financing are set forth in the company’s current report on Form 8-K, filed today with the SEC.

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. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, the Company’s expectations regarding the financial flexibility provided by the new credit facility, as well as its earnings expectations. market share and growth prospects. Forward-looking statements are based on management’s current assumptions and expectations regarding future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events. may differ materially from those expressed or implied by such statements due to numerous risks and uncertainties. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of Treace’s public filings with the Securities and Exchange Commission (SEC). ), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on March 4, 2022. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of new information, future developments or otherwise.

About Treace Medical Concepts
Treace Medical Concepts, Inc. is a medical technology company focused on advancing the standard of care for the surgical management of bunion deformities and associated midfoot correction. Bunions are complex three-dimensional deformities that originate from an unstable joint in the midfoot. Treace pioneered and patented the Lapiplasty® 3D Bunion Correction™ System – a combination of instruments, implants and surgical methods designed to correct all 3 planes of the bunion deformity and secure the unstable joint, attacking the root cause of bunion and helping patients get back to their active lifestyle. Treace recently expanded its offering with the Adductoplasty™ midfoot correction system, designed for reproducible midfoot correction to provide additional support for patients with hallux valgus. For more information, visit www.treace.com.

contacts:

Tracee Medical Concepts
Mark L.Hair
Financial director
[email protected]
(904) 373-5940

Investors:

Gilmartin Group
Lynn Lewis or Vivian Cervantes
[email protected]

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1 “Adjusted Forward SOFR” means the annual rate equal to the sum of the 30-day forward-looking guaranteed overnight rate, as published by CME Group Benchmark Administration Limited (CBA) from time to time, plus 0.10% , reset monthly.

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