Trinity Biotech Announces Entry Into An Increased Loan Facility to Fund Potential Acquisitions
Trinity Biotech plc (Nasdaq: TRIB) has announced an increase in its loan facility, securing an additional $5 million in funding to support potential acquisitions and ongoing operations. The amended senior secured term loan, with Perceptive Advisors, totals $20 million and matures in January 2026, accruing interest at 11.25% plus a variable rate. The company plans to utilize the funds for strategic investments in diabetes care and decentralized diagnostic solutions. CEO Aris Kekedjian emphasized that the funding will enable rapid growth amidst a strong market for M&A opportunities.
- Increased loan facility of $20 million to fund acquisitions.
- Immediate access to $5 million for operational support.
- No amortization required until maturity in January 2026.
- Repriced warrants could align investor interests with company growth.
- High interest rate of 11.25% plus variable rates increases financial burden.
- Risks associated with potential acquisitions may affect financial stability.
DUBLIN, Ireland, Feb. 22, 2023 (GLOBE NEWSWIRE) -- Trinity Biotech plc (Nasdaq: TRIB) (the “Company”), a leading developer and manufacturer of diagnostic products for the point-of-care and clinical laboratory markets, today announced its entry into an increased loan facility to fund potential acquisitions and ongoing operations.
Increase Loan Facility
The Company announced today that it and its subsidiaries entered into an amended and restated senior secured term loan credit facility (the “Term Loan”) with Perceptive Advisors (“Perceptive”), an investment manager with an expertise in healthcare. The amendment to the Term Loan allows for an immediate
The 48-month Term Loan matures in January 2026 and accrues interest at an annual rate equal to
In connection with the increased Term Loan facility, the Company has agreed to reprice the 2,500,000 warrants originally issued to Perceptive (the “Warrants”) under the Term Loan, with the Warrants now having a per ADS price of
Comments
Commenting on the increased Term Loan facility, Aris Kekedjian, Chief Executive Officer stated, “This market is presenting us with a strong pipeline of attractive M&A opportunities that we believe also present optimal refinancing opportunities. This facility allows us to move quickly and with purpose as we transform Trinity Biotech into a high growth innovator in Diabetes care and decentralised diagnostic solutions.”
Commenting on the increased Term Loan facility, John Gillard, Chief Financial Officer stated, “We continue to take a hard look at our existing portfolio of businesses to identify optimum uses of capital across core and non-core areas. In addition, we believe there are attractive opportunities for inorganic investments in our two core growth focus areas of diabetes and decentralised diagnostic solutions. Having access to this acquisition financing, along with disciplined uses of capital across our existing portfolio of businesses, should give us greater opportunity to continue to rapidly transition Trinity Biotech into a more focused, high growth company with next generation technologies.”
Forward Looking Statements
Certain statements made in this release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Trinity Biotech to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, but not limited to, the results of research and development efforts, risks associated with the outbreak and global spread of the coronavirus (COVID-19), the effect of regulation by the U.S. Food and Drug Administration and other agencies, the impact of competitive products, product development commercialization and technological difficulties. For additional information regarding these and other risks and uncertainties associated with Trinity Biotech’s business, reference is made to our reports filed from time to time with the U.S. Securities and Exchange Commission.
About Trinity Biotech Plc
Trinity Biotech develops, acquires, manufactures and markets diagnostic systems, including both reagents and instrumentation, for the point-of-care and clinical laboratory segments of the diagnostic market. The products are used to detect infectious diseases and to quantify the level of Haemoglobin A1c and other chemistry parameters in serum, plasma and whole blood. Trinity Biotech sells direct in the United States, Germany, France and the U.K. and through a network of international distributors and strategic partners in over 75 countries worldwide. For further information, please see the Company's website: www.trinitybiotech.com.
| Contact: | Trinity Biotech plc | Lytham Partners, LLC |
| John Gillard | Joe Diaz | |
| (353)-1-2769800 | (1)-602-889-9700 | |
| E-mail: investorrelations@trinitybiotech.com |
FAQ
What is the purpose of Trinity Biotech's increased loan facility?
How much additional funding has Trinity Biotech secured?
What is the interest rate on the new loan facility for Trinity Biotech?
When does the loan facility for Trinity Biotech mature?
What strategic areas is Trinity Biotech focusing on with the new funding?
