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Jan23Tandem Diabetes Care and Capital Royalty Close Term Loan Facility


San Diego, January 23, 2013 –Tandem Diabetes Care®, Inc. (“Tandem” or the “Company”) and Capital Royalty Partners II, L.P. (“Capital Royalty”) today announced that they have closed a term loan facility that provided Tandem with $30 million, and up to an additional $15 million based on certain revenue milestones.

 

Tandem is a privately-owned medical device company that focuses on advancing the management of diabetes through novel technologies. The Company announced FDA clearance for its lead product, the t:slim® Insulin Pump, in  November 2011 and began shipping to customers on August 31, 2012.  The t:slim Pump has a vivid color touch screen and was designed to make diabetes management easier to teach and easier to learn. Tandem intends to use the proceeds of the financing to support its ongoing commercial launch of the t:slim Insulin Pump in the U.S., and to continue development of its robust pipeline of diabetes products.

 

“We are very pleased to have Capital Royalty as a strategic financing partner,” said Kim Blickenstaff, Tandem’s President and Chief Executive Officer. “The Capital Royalty team’s focus and efficiency allowed us to work quickly to structure and fund the financing arrangement to ensure the continued support of our commercial launch, and research and development activities.”

 

“Our investment in Tandem reflects our focus on structuring customized financing solutions for healthcare companies with commercial technologies,” said Charles Tate, Chairman & Founder of Capital Royalty L.P. “We believe the t:slim Pump is a highly-innovative product and are excited about the significant, long-term growth potential of Tandem.”

 

Capital Royalty’s financing builds on a syndicate of leading venture capital and growth equity investors including Delphi Ventures, Domain Associates, HLM Venture Partners, Kearny Ventures, and TPG Biotech.

 

About Tandem Diabetes Care, Inc.

 

Tandem Diabetes Care, Inc. (www.tandemdiabetes.com) is a privately held company dedicated to advancing the management of diabetes through novel technologies. The Company offers a comprehensive, user-centric and integrated approach to product design, development, and customer care. Tandem Diabetes Care is based in San Diego, Calif.

 

About Capital Royalty L.P.

 

Founded in 2003, Capital Royalty is a market pioneer and innovator in healthcare investing focused on intellectual property investments in approved products through a variety of structures including royalty bonds, secured debt, revenue interests and traditional royalty monetizations. Collectively, the Capital Royalty investment team has more than 140 years of healthcare, private equity, capital markets, and investment banking experience, having completed more than 50 royalty transactions representing $4 billion in capital over the past 15 years.

 

Capital Royalty works directly with leading healthcare companies, research institutions, and inventors to provide customized solutions to meet their unique financing needs. The firm is actively making investments through its managed investment funds which focus on sourcing, structuring, and investing in healthcare assets that provide superior risk-adjusted returns, attractive current cash yields, strong downside protection, and minimal correlation to other asset classes or the broader economy.

 

The firm is headquartered in Houston, Texas with offices in Boulder, Colorado and New York City. For additional information, please visit www.capitalroyalty.com.

 

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Tandem Diabetes Care Media Contact:


Susan Morrison
Director, HR, Corporate & Investor Relations
858-366-6880
smorrison@tandemdiabetes.com

 

Capital Royalty L.P. Media Contact:


Luke Duster
Principal
713-209-7350
lduster@capitalroyalty.com