Paragon 28 Announces New $150 Million Credit Facility to Replace Existing $90 Million Credit Facility
ENGLEWOOD, CO, November 7, 2023–(BUSINESS WIRE)–Paragon 28, Inc. (NYSE: FNA) (“Paragon 28” or “Company”), a leading medical device company focused exclusively 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 the existing $90 million senior credit facility. The facility consists of up to $100 million in term loans, with $75 million drawn at closing, and a $50 million revolving credit facility, with $25 million drawn at closing. The facility has no dilutive effect without warrants or other equity-based instruments. The Company’s pro forma liquidity as of September 30, 2023 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 in 2024 and beyond, and the non-dilutive liquidity provided by Ares strengthens P28’s path to breakeven cash flow,” said Steve Deitsch, Chief Financial Officer.
“We are excited to partner with Paragon 28, a truly innovative and fast-growing company,” said Doug Dieter, partner at Ares’ Credit Group. “P28’s growth and leadership in the global foot and ankle market has been impressive, and we are pleased to support its continued 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 focused exclusively on the foot and ankle orthopedic market and committed to improving the lives of patients. Since its inception, Paragon 28® has provided innovative orthopedic solutions, procedural approaches and devices covering a wide range of foot and ankle conditions, including fracture fixation, forefoot, ankle, progressive collapsing foot deformity (PCFD) or flat foot, Charcot foot and orthobiological agents . The company designs products with both the patient and surgeon in mind, with the goals of improving outcomes, reducing recurrences of disease and complications, and making procedures simpler, more 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 strive to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By working with all 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 in assets under management, with approximately 2,800 employees operating in 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 to: Paragon 28’s potential to shape a better future for foot and ankle patients and estimated net revenues for the 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, which speak only as of the date on which they are made, and are subject to risks and uncertainties, some of which we are not currently aware of. Forward-looking statements should not be read as a guarantee of future performance or results and may not necessarily be an accurate indication of the times at or at 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. As a result of these risks and uncertainties, actual results and the timing of events may differ materially from those anticipated in such forward-looking statements. These risks and uncertainties are more fully described in the section entitled “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 on filed with the SEC on March 2. , 2023. Paragon 28 undertakes no obligation to update any forward-looking statements and expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein. These forward-looking statements should not be relied upon as representing the views of Paragon 28 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 results of operations for future periods.
Contacts
Contact person for investors:
Matt Brinckman
Senior Vice President, Strategy and Investor Relations
mbrinckman@paragon28.com
