Lifeline: Insulet

Insulet Receives $60 Million Funding Commitment --Credit Facility Secured with Deerfield Management

BEDFORD, Mass, March 16, 2009 /PRNewswire

Insulet today announced that it has entered into an agreement with Deerfield Management Company to provide Insulet with up to $60 million in financing through a flexible credit facility.

Duane DeSisto, President and Chief Executive Officer of Insulet Corporation: "This $60 million facility is an attractive form of financing that limits dilution for our shareholders and gives Insulet access to capital to fuel our growth."

Under the terms of the agreement, Deerfield will provide Insulet with $27.5 million within fifteen business days of signing and has committed up to $32.5 million in additional funding to be drawn by Insulet at its discretion over the next twenty months based on the achievement of certain financial performance milestones. Any amounts drawn will accrue interest until maturity at a rate of 9.75 percent per annum which is payable on a quarterly basis. Insulet will pay a 2.75 percent per annum interest rate on undrawn amounts. The funds drawn are repayable in September 2012.