1. TMCI secures a $175 million loan, enhancing financial flexibility. 2. Loan terms include $60 million upfront and a $50 million revolving credit. 3. Company aims to expand market position and improve competitive advantage. 4. Total liquidity now stands at approximately $165 million post-refinancing. 5. Managing debt efficiently, with interest-only payments for the first four years.
FAQ
Why Bullish?
The secured loan strengthens TMCI's financial positioning, akin to past successes post-financing.
How important is it?
The financing decision is crucial for TMCI's operational expansion and market development.
Why Long Term?
The funding allows TMCI to invest in growth strategies over the next five years.
Treace Medical Concepts Secures Up to $175 Million in Debt Financing
PONTE VEDRA, Fla., December 18, 2025 (GLOBE NEWSWIRE) — Treace Medical Concepts, Inc. (NasdaqGS: TMCI), a pioneering medical technology company specializing in bunion and midfoot deformity treatments, has announced a significant new financing agreement. The company has entered into a five-year senior secured loan arrangement totaling $175 million with credit funds managed by SLR Capital Partners. This deal includes $60 million in term loans funded at the closing, $65 million of additional term loan availability, and a $50 million revolving credit facility.
Financial Details of the New Loan Arrangement
The proceeds from this financing arrangement will be utilized to refinance Treace’s existing debts, including a prepayment of a $50 million term loan and $4 million drawn from its previous revolving credit facility. John T. Treace, the CEO and Chairman, emphasized the importance of this financing, stating, “This capital-efficient vehicle helps our business remain well-capitalized as we strive to expand our market and strengthen our competitive position.”
- Loan Tenure: 5 years for both the term loan and revolving credit facility.
- Interest Rates: Applicable SOFR plus 5.05% for the term loan and 4% for the revolving loan.
- Payment Terms: 48 months of interest-only payments, extendable for an additional 12 months.
Impact and Strategic Importance for Treace Medical Concepts (TMCI)
The completion of this refinancing bolsters the company's liquidity position. Treace currently has approximately $165 million in total liquidity, comprised of cash, cash equivalents, marketable securities, and available credit under the new financing arrangement.
This strategic funding aligns with Treace's goals of enhancing its operational flexibility, enabling the company to pursue its vision of becoming the standard of care in bunion surgery. Armentum Partners acted as the financial advisor to Treace Medical Concepts throughout this transaction.
Forward-Looking Statements and Regulatory Disclosures
This announcement contains forward-looking statements regarding Treace's financial outlook and strategic initiatives. Such statements are inherently subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied. Treace encourages investors to review its filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed assessment of potential risks.
About Treace Medical Concepts
Treace Medical Concepts, Inc. is dedicated to advancing the standard of care for surgical interventions related to bunion and midfoot deformities. With an estimated 67 million Americans affected by bunions, Treace has positioned itself at the forefront of innovation with its patented Lapiplasty®3D Bunion Correction® System. This system aims to address the root cause of bunions and improve patient outcomes.
To learn more about Treace and its offerings, please visit www.treace.com and connect with us on social media platforms.
Contact Information
Treace Medical Concepts
Mark L. Hair
Chief Financial Officer
Email: mhair@treace.net
Phone: (904) 373-5940
Investors:
Gilmartin Group
Philip Trip Taylor
Email: IR@treace.net