Contact Information: Contact: Stephanie Marks for Insulet Corporation 877-PODD-IR1 (877-763-3471)
Insulet Announces Early Repayment of $32.5 Million Facility Agreement
Prepayment Saves $5 Million in Cash Interest Expenses
| Source: Insulet Corporation
BEDFORD, MA--(Marketwire - 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 Company's 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 Insulet's 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 Insulet's
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 Company's dependence on the
OmniPod System; Insulet's ability to increase customer orders and
manufacturing volumes; adverse changes in general economic conditions;
impact of healthcare reform legislation; Insulet's 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;
Insulet's 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 Company's business; potential
termination of Insulet's license to incorporate a blood glucose meter into
the OmniPod System; Insulet's ability to protect its intellectual property
and other proprietary rights; conflicts with the intellectual property of
third parties, including claims that Insulet's current or future products
infringe the proprietary rights of others; adverse regulatory or legal
actions relating to the OmniPod System; failure of Insulet's contract
manufacturers or component suppliers to comply with FDA's 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 Insulet's 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 Insulet's competitors; potential future
publication of articles or announcement of positions by physician
associations or other organizations that are unfavorable to Insulet's
products; the expansion, or attempted expansion, into foreign markets; the
concentration of substantially all of Insulet's manufacturing capacity at a
single location in China and substantially all of Insulet's inventory at a
single location in Massachusetts; Insulet's ability to attract and retain
key personnel; Insulet's ability to manage its growth; fluctuations in
quarterly results of operations; risks associated with potential future
acquisitions; Insulet's ability to generate sufficient cash to service all
of its indebtedness; the expansion of Insulet's distribution network;
Insulet's 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 March 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 Company's 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.