T2 Biosystems entered into a $50 million debt facility agreement with CRG. The new facility consists of an initial draw of $40 million and the ability to borrow an additional $10 million through and including July 27, 2018, based on certain operating milestones.

The company is using approximately $28 million of the initial term loan proceeds to retire existing debt facilities and promissory notes and, subject to payment of expenses related to the transaction, intends to retain the remainder of the initial term loan proceeds, plus any additional amounts borrowed, for general corporate purposes, working capital and the company’s strategic priorities.

The new credit facility includes terms that greatly diminish cash debt service in the coming periods while the company solidifies its foundation of installed T2 Magnetic Resonance base technology and works toward delivering the T2Bacteria Panel to the market, which is anticipated to occur later this year.

WBB Securities acted as financial advisor on the transaction.

“Today’s announcement with CRG, coupled with the recent $40 million investment by Canon Partners U.S.A and the funding received through other partnerships including the partnership with Allergan, has put T2 Biosystems in a strong financial position to help fund our future growth and drive value for our shareholders,” said John McDonough, president and chief executive officer of T2 Biosystems.

T2 Biosystems is focused on developing innovative diagnostic products to improve patient health.