Outset Medical, Inc. Announces Completion of Private Placement and Term Loan Repayment

Outset Medical, Inc. recently closed a significant Private Placement transaction, as disclosed in the company’s latest 8-K filing with the U.S. Securities and Exchange Commission. The offering entailed the issuance and sale of 863,340 shares of Series A Non-Voting Convertible Preferred Stock, with a par value of $0.001 per share. The transaction, which was completed on January 8, 2025, involved various investors, including members of the management team and the Board of Directors.

In conjunction with the Private Placement, Outset Medical terminated a prior Credit Agreement and Guaranty with Perceptive Credit Holdings IV, LP. The company utilized the proceeds from the initial $100.0 million term loan, in addition to available cash, to repay all outstanding amounts owed under two senior secured credit facilities with SLR Investment Corp. and Gemino Healthcare Finance, LLC. Subsequently, the SLR Credit Facilities were fully terminated as of the closing date.

Moreover, on the Closing Date, Outset Medical also entered into a direct financial obligation by borrowing a $100.0 million initial term loan and issuing a warrant to purchase 5,625,000 shares of the company’s Common Stock at an exercise price of $0.80. Additional warrants, contingent upon a delayed draw term loan of up to $25.0 million, may be issued to lenders for the purchase of 1,406,250 shares of Common Stock.

A noteworthy amendment to Outset Medical’s Articles of Incorporation included the filing of a Certificate of Designation of Preferences, Rights, and Limitations of the Series A Non-Voting Convertible Preferred Stock. This action allows for the issuance of up to 863,340 shares of the Series A Preferred Stock. Until stockholder approval of the conversion of Series A Preferred Stock into Common Stock is acquired, dividends will accrue at an annual rate of eight percent on the original per share price of $200.00, with increments of two percent annually in the absence of such approval.

Investors holding shares of Series A Preferred Stock will have conversion privileges once stockholder approval is obtained, with each share automatically converting into 250 shares of Common Stock. However, certain restrictions apply, prohibiting the beneficial ownership percentage from exceeding a specified threshold post-conversion.

For further details and the complete documentation regarding the recent transactions, including copies of the Certificate of Designations and the Warrant Certificate, interested parties are advised to refer to Outset Medical, Inc.’s official filing with the Securities and Exchange Commission.

The article is based on Outset Medical’s public disclosure via the 8-K form submitted to the SEC on January 7, 2025.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Outset Medical’s 8K filing here.

About Outset Medical

Outset Medical, Inc, a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables.