Paragon 28, a medical device company exclusively focused on the foot and ankle orthopedic market, received a $150 million credit facility from Ares Capital to replace its existing $90 million senior credit facility. The facility is comprised of up to $100 million in term loans, with $75 million drawn at close, and a $50 million revolving credit facility, with $25 million drawn at close. The facility is non-dilutive without warrants or other equity-based instruments. The company’s Sept. 30, pro forma liquidity is $147 million, including $97 million of pro forma cash and $50 million of available borrowings under the Facility.
“We expect continued improvements in our earnings and cash flow into 2024 and beyond, and the non-dilutive liquidity provided by Ares reinforces P28’s pathway to cash flow break-even,” Steve Deitsch, CFO of Paragon 28, said.
“We are excited to partner with Paragon 28, a truly innovative and high growth company,” Doug Dieter, partner in Ares’ credit group, said. “P28’s growth and leadership in the global foot and ankle market is impressive, and we are pleased to support its ongoing mission to improve patient outcomes.”
