Secures New Debt Financing of up to $125M Maturing in 2030 with Plans to Retire $200M in Prior Debt

Reports Unaudited Fourth-Quarter Revenue of $29 million and 2024 Revenue of $113 million

SAN JOSE, Calif., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Outset Medical, Inc. (NASDAQ:OM) ("Outset"), a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis, today announced that it has entered into a definitive securities purchase agreement for a private placement of 843,908 shares of its Series A Non-Voting Convertible Preferred Stock at a price of $200.00 per share. Subject to Outset stockholder approval and beneficial ownership limitations, each share of Series A Non-Voting Convertible Preferred Stock will automatically convert to 250 shares of common stock for an aggregate of 210,977,000 shares of common stock. The gross proceeds to Outset from the private placement, before deducting placement agent fees and other offering expenses payable by Outset, are expected to be $168.8 million. An additional $3.9 million, for 19,432 shares of Series A Non-Voting Convertible Preferred Stock, will be invested by certain members of the board and management, including Chair and CEO Leslie Trigg, upon shareholder approval.

In addition, Outset has entered into a credit agreement and guaranty with a fund managed by Perceptive Advisors, which will provide a $100 million 5-year term loan at closing and an additional term loan of up to $25 million at the company's election, in each case, subject to the satisfaction of customary closing conditions and in the case of the delayed draw term loan, meeting a specified revenue milestone. The loans will accrue interest at a rate per annum equal to one-month term SOFR (subject to a floor of 4%) plus 8%, with maturity in 2030. The loans will be secured by substantially all assets of Outset. At closing, Outset expects to use the proceeds of the initial term loan, together with cash on hand, to repay in full all amounts due under Outset's existing credit facilities that were set to mature in 2027.