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8-K - FORM 8-K - INSULET CORP | b83763e8vk.htm |
Exhibit 99.1
INSULET ANNOUNCES EARLY REPAYMENT OF $32.5 MILLION
FACILITY AGREEMENT
FACILITY AGREEMENT
Prepayment Saves $5 Million in Cash Interest Expenses
BEDFORD, MA, December 14, 2010 Insulet Corporation (NASDAQ: PODD), the leader in
tubing-free insulin pump technology with its OmniPod® Insulin Management System, today announced
that it has repaid all amounts outstanding under the Companys Facility Agreement with Deerfield
Partners, entered into in March 2009.
We are very pleased that our recent equity financing has given us the ability to prepay our
Facility Agreement, saving shareholders approximately $5 million in cash interest payments, while
deleveraging the balance sheet, said Brian Roberts, Chief Financial Officer of Insulet. Deerfield
has been a great partner over the past two years and we are grateful for their support. They saw
the potential in Insulets business strategy in 2009 and provided us with the capital to continue
to expand the market opportunity for the OmniPod System.
On December 14, 2010, the Company paid $33.3 million to Deerfield Partners, the lenders, of which
$32.5 million related to principal and $0.8 million related to interest and prepayment fees, to
extinguish this debt. Amounts under the Facility Agreement accrued interest at 8.5% per year and
were due in September 2012. The Company will record a non-cash interest charge of approximately $8
million in the fourth quarter related to debt discounts and financing costs which were being
amortized to interest expense over the term of the debt.
Forward-Looking Statement
This press release contains forward-looking statements concerning Insulets expectations,
anticipations, intentions, beliefs or strategies regarding the future, including those related to
its expected revenue and operating losses, prepayment of debt, anticipated cost savings and
financial performance. These forward-looking statements are based on its current expectations and
beliefs concerning future developments and their potential effects on it. There can be no assurance
that future developments affecting it will be those
that it has anticipated. These forward-looking
statements involve a number of risks, uncertainties (some of which are beyond its control) or other
assumptions that may cause actual results or performance to be materially different from those
expressed or implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to: risks associated with the Companys dependence on
the OmniPod System; Insulets ability to increase customer orders and manufacturing volumes;
adverse changes in general economic conditions; impact of healthcare reform legislation; Insulets
inability to raise additional funds in the future on acceptable terms or at all; potential supply
problems or price fluctuations with sole source or other third-party suppliers on which Insulet is
dependent; international business risks; Insulets inability to obtain adequate coverage or
reimbursement from third-party payors for the OmniPod System and potential adverse changes in
reimbursement rates or policies relating to the OmniPod; potential adverse effects resulting from
competition with competitors; technological innovations adversely affecting the Companys business;
potential termination of Insulets license to incorporate a blood glucose meter into the OmniPod
System; Insulets ability to protect its intellectual property and other proprietary rights;
conflicts with the intellectual property of third parties, including claims that Insulets current
or future products infringe the proprietary rights of others; adverse regulatory or legal actions
relating to the OmniPod System; failure of Insulets contract manufacturers or component suppliers
to comply with FDAs quality system regulations, the potential violation of federal or state laws
prohibiting kickbacks or protecting patient health information, or any challenges to or
investigations into Insulets practices under these laws; product liability lawsuits that may be
brought against Insulet; reduced retention rates; unfavorable results of clinical studies relating
to the OmniPod System or the products of Insulets competitors; potential future publication of
articles or announcement of positions by physician associations or other organizations that are
unfavorable to Insulets products; the expansion, or attempted expansion, into foreign markets; the
concentration of substantially all of Insulets manufacturing capacity at a single location in
China and substantially all of Insulets inventory at a single location in Massachusetts; Insulets
ability to attract and retain key personnel; Insulets ability to manage its growth; fluctuations
in quarterly results of operations; risks associated with potential future acquisitions; Insulets
ability to generate sufficient cash to service all of its indebtedness; the expansion of Insulets
distribution network; Insulets ability to successfully maintain effective internal controls; and
other risks and uncertainties described in its Annual Report on Form 10-K, as amended, which was
originally filed with the Securities and Exchange Commission on M
arch 9, 2010 in the section
entitled Risk Factors, and in its other filings from time to time with the Securities and
Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any
of its assumptions prove incorrect, actual results may vary in material respects from those
projected in these forward-looking statements. Insulet undertakes no obligation to publicly update
or revise any forward-looking statements.
About Insulet Corporation
Insulet Corporation is an innovative medical device company dedicated to improving the lives of
people with diabetes. The Companys OmniPod Insulin Management System is a revolutionary, discreet
and easy-to-use insulin infusion system that features two easy-to-use parts with no tubing and
fully-automated cannula insertion. Through the OmniPod System, Insulet seeks to expand the use of
continuous subcutaneous insulin infusion (CSII) therapy among people with insulin-dependent
diabetes. Founded in 2000, Insulet is based in Bedford, MA.
Contact:
Stephanie Marks for Insulet Corporation
ir@insulet.com
877-PODD-IR1 (877-763-3471)