NEW YORK (GenomeWeb) – T2 Biosystems has entered into a $50 million debt facility agreement with CRG.
The firm will initially draw $40 million and can take out the rest through July 27, 2018, based on certain operating milestones.
T2 Bio said in a statement that it will use approximately $28 million to retire existing debt facilities and promissory notes. The remainder will be used for general corporate purposes, as working capital, and to fund strategic priorities.
"Today's announcement with CRG, coupled with the recent $40 million investment by Canon Partners U.S.A and the funding received through other partnerships including the partnership with Allergan, has put T2 Biosystems in a strong financial position to help fund our future growth and drive value for our shareholders," T2 President and CEO John McDonough said in a statement. "We remain confident in the business' strategic direction and are squarely focused on executing against our key priorities — growing our customer base, introducing new products to expand our suite of services, expanding our partnership pipeline and highlighting the power of our technology through customer success stories and real-world data."
The firm added that the new credit facility "includes terms that greatly diminish cash debt service in the coming periods."
WBB Securities acted as financial advisor.