Tandem Diabetes Care announced a private placement of $200 million in convertible senior notes due 2032, with an option for initial purchasers to buy an additional $30 million. The notes are senior, convertible, and will mature in 2032, providing liquidity to support growth initiatives and ongoing operations.
The terms of the offering, including the interest rate and conversion price, will be set at pricing. The notes are intended to be used for capped call transactions and general corporate purposes, such as potential debt repayment and investment in growth initiatives.
Tandem’s recent financial performance shows record Q4 2025 sales of $290.4 million and full‑year sales of $1.015 billion, with a gross margin of 58% in Q4 and 54% for the year. The company reported a net loss of $0.6 million in Q4, but positive adjusted EBITDA and cash flow from operations.
Management highlighted a strategic shift toward a pay‑as‑you‑go pharmacy model in the U.S., aiming to increase recurring revenue and improve long‑term margins. CEO John Sheridan said the company is building on its 2025 momentum to strengthen its business and deliver new technology solutions.
The convertible notes add to Tandem’s debt of $449 million as of the latest quarter, but the company plans to mitigate dilution through capped call hedges. The financing is intended to support the company’s growth initiatives and ongoing operations.
The announcement was met with a negative market reaction, with analysts expressing concerns over dilution and leverage.
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