Paragon 28 Announces New $150 Million Credit Facility Replacing Existing $90 Million Credit Facility

Paragon 28, Inc. (NYSE: FNA) (“Paragon 28” or "Company”), a leading medical device company exclusively focused on the foot and ankle orthopedic market, today announced that it has received a new $150 million credit facility from Ares Capital Corporation (“the Facility”) to replace its existing $90 million senior credit facility. The Facility is comprised of up to $100 million in term loans, with $75 million drawn at close, and a $50 million revolving credit facility, with $25 million drawn at close. The Facility is non-dilutive without warrants or other equity-based instruments. The Company’s September 30, 2023, pro forma liquidity is $147.0 million, including $97.0 million of pro forma cash and $50 million of available borrowings under the Facility.

“We expect continued improvements in our earnings and cash flow into 2024 and beyond, and the non-dilutive liquidity provided by Ares reinforces P28’s pathway to cash flow break-even,” said Steve Deitsch, Chief Financial Officer.

“We are excited to partner with Paragon 28, a truly innovative and high growth company,” said Doug Dieter, Partner in Ares’ Credit Group. “P28’s growth and leadership in the global foot and ankle market is impressive, and we are pleased to support its ongoing mission to improve patient outcomes.”

Further details regarding the Credit Agreement are included in the Company’s Form 8-K filed with the U.S. Securities and Exchange Commission on November 7, 2023.

About Paragon 28, Inc.

Based in Englewood, Colo., Paragon 28, is a leading medical device company exclusively focused on the foot and ankle orthopedic market and is dedicated to improving patient lives. From the onset, Paragon 28 has provided innovative orthopedic solutions, procedural approaches and instrumentation that cover a wide range of foot and ankle ailments including fracture fixation, forefoot, ankle, progressive collapsing foot deformity (PCFD) or flatfoot, charcot foot and orthobiologics. The company designs products with both the patient and surgeon in mind, with the goal of improving outcomes, reducing ailment recurrence and complication rates, and making the procedures simpler, consistent, and reproducible.