Tandem Diabetes Care (Nasdaq:TNDM) today announced the pricing of a $265 million offering of convertible senior notes.
San Diego-based Tandem earlier this week announced its intent to offer $200 million in notes, due 2032, in a private placement. It now says it upsized that offering by $65 million.
The company also granted initial purchasers an option to buy, within a 13-day period from issuance, up to $35 million in additional notes. It expects to close the sale of the notes on Friday, Feb. 27, 2026, subject to customary closing conditions. The notes will be general unsecured obligations of tandem and won’t bear regular interest rates, while the principal amount will not accrete. They mature on March 15, 2032, unless earlier converted, redeemed or repurchased.
Tandem now expects net proceeds from the offering to total $256.7 million. That number could increase to approximately $290.7 million if initial purchasers exercise their additional option in full. It expects to use proceeds to pay the approximately $13.5 million cost of capped call transactions outlined in the initial announcement of the private placement.
After paying for the capped call transactions, the company expects to use the remaining funds for general corporate purposes. That could include cquisitions or strategic investments in complementary businesses or technologies, working capital, operating expenses and capital expenditure. If purchasers exercise their additional option, Tandem expects to use more proceeds for additional capped call transactions.
Holders can convert their notes before Dec. 15, 2031, only under specified conditions and during certain periods. On or after that date, holders may convert all or any portion of their notes at any time. Tandem may not redeem the notes prior to March 20, 2029.
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.
