This article ran on Monday, Feb. 23, 2026. On Wednesday, Feb. 25, 2026, Tandem announced the upsized pricing of the offering. Read the updated article here.
Tandem Diabetes Care (Nasdaq:TNDM) announced today that it intends to offer $200 million in convertible senior notes, due in 2032.
San Diego-based Tandem said it plans to offer the notes in a private placement to qualified institutional buyers. It also intends to grant initial purchasers an option to buy up to an additional $30 million in notes. That option falls within the 13-day period beginning on and including the first date of issuance.
The notes will be general unsecured obligations of Tandem and accrue interest payable semi-annually in arrears. Tandem will determine the interest rate, initial conversion rate and other terms at the time of the pricing of the offering.
In association with the pricing, the company expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers or their affiliates and/or other certain financial institutions. Those capped calls would cover the number of shares of common stock initially underlying the notes.
Tandem expects the capped call transactions to offset the dilution to its common stock as a result of any conversion of the notes. It expects that the option counterparties or affiliates will enter into various derivative transactions and/or modify their hedge positions. These actions could cause an increase or decrease of the market price of Tandem stock or the notes, the company said.
According to a news release, Tandem plans to use proceeds to pay the cost of the capped call transactions. It expects to use the remainder for general corporate purposes. Those may include acquisitions or strategic investments in complementary businesses or technologies, working capital, operating expenses and capital expenditure.
Tandem — one of the largest diabetes tech companies in the world — develops automated insulin delivery technology, including the flagship t:slim X2 pump and the miniature, durable Mobi pump.
