DexCom, Inc. (NASDAQ:DXCM) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantITEM 2.03.
On February 28, 2017, DexCom, Inc. (“DexCom”), committed to borrow $75 million in principal amount under its existing $200 million revolving credit facility to increase its cash position to fund certain of its near term capital expenditures, working capital requirements, and for general corporate purposes. The credit facility was established to its Credit Agreement, dated June 17, 2016, by and among DexCom, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, Silicon Valley Bank and Union Bank (the “Credit Agreement”).
DexCom has selected a revolving loan at an adjusted LIBOR-based rate plus a margin of 1.75%. The rate of interest on this $75 million revolving loan for the selected interest period is 3.19% percent. After taking into account this draw down under the Credit Agreement, DexCom has an additional $125 million available under the Credit Agreement. The borrowed funds were received by DexCom on March 3, 2017. The term of the borrowing is six months and the total interest anticipated on the borrowing during that period is approximately $1.2 million.
The Credit Agreement is described under Item 1.01 of DexCom’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 20, 2016, which description is incorporated by reference herein. Such description is also qualified by the full text of the Credit Agreement, which was filed as Exhibit 10.38 to DexCom’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on August 2, 2016, which filing and exhibit are incorporated by reference herein.
About DexCom, Inc. (NASDAQ:DXCM)
Dexcom, Inc. (Dexcom) is a medical device company. The Company is focused on the design, development and commercialization of continuous glucose monitoring systems for ambulatory use by people with diabetes and for use by healthcare providers for the treatment of people with and without diabetes. Its products include SEVEN PLUS, DexCom G4, DexCom G4 PLATINUM, DexCom Share System and DexCom G5 Mobile. It had received Conformite Europeene Marking (CE Mark) approval for its fourth generation continuous glucose monitoring system, the DexCom G4 system, enabling commercialization of the DexCom G4 system. DexCom SHARE enables users of its G4 PLATINUM System to have their sensor glucose information remotely monitored by their family or friends. The G4 PLATINUM Receiver with Share uses a secure wireless connection via Bluetooth Low Energy (BLE) between a patient’s receiver and a mobile application on the patient’s iPhone to transmit glucose information. DexCom, Inc. (NASDAQ:DXCM) Recent Trading Information
DexCom, Inc. (NASDAQ:DXCM) closed its last trading session down -1.07 at 79.37 with 1,013,443 shares trading hands.
