Treace Medical Secures Up to $175 Million in Debt Financing

Rhea-AI Summary

Treace Medical (Nasdaq: TMCI) entered a new five-year senior secured loan arrangement providing up to $175 million in debt financing on Dec 18, 2025. The package consists of $60 million funded at close, $65 million additional term loan availability, and a $50 million revolving credit facility, each subject to conditions.

Proceeds prepaid the company’s prior $50 million term loan and $4 million drawn on its prior revolver. Interest equals applicable SOFR with a 3% floor plus 5.05% on the term loan (minimum ~8.05%) and 4.0% on the revolver (minimum ~7.0%). The term loan allows 48 months interest-only payments, extendable by 12 months. After the refinancing, Treace reports approximately $165 million of total liquidity (cash, equivalents, marketable securities, and unused facility availability), and listed Armentum Partners as financial advisor.

Positive

• Non-dilutive $175M secured financing
• Immediate funding: $60M received at close
• ~$165M total liquidity after closing
• 48 months interest-only on term loan (improved near-term cash flow)

Negative

• Term loan minimum rate of ~8.05% (3% floor + 5.05% spread)
• Revolver minimum rate of ~7.0% (3% floor + 4.0% spread)
• Facility availability and revolver draws are subject to conditions

Key Figures

Debt facility size $175 million Total senior secured loan arrangement over five years

Term loan funded $60 million Term loans funded at close under new facility

Additional term capacity $65 million Additional term loan availability, subject to conditions

Revolver size $50 million New revolving credit facility size, subject to conditions

Old term loan prepaid $50 million Prior term loan prepaid with new proceeds

Prior revolver draw $4 million Amount drawn under previous revolver that was repaid

New total liquidity $165 million Cash, equivalents, securities, and unused credit facility

Term loan interest SOFR + 5.05% Annual interest rate on term loan, SOFR floor 3%

Market Reality Check

$2.50 Last Close

Volume Volume 665,243 is below the 20-day average of 746,622 (relative volume 0.89). normal

Technical Shares at $2.58 are trading below the 200-day MA of $6.18 and near the 52-week low of $2.55.

Peers on Argus

TMCI is down 4.44% while peers show mixed moves: KIDS -3.51%, CBLL -2.57%, versus BVS +3.19% and CTKB +2.34%, indicating stock-specific pressure rather than a broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 07	Investor conferences	Neutral	-28.3%	Participation in two healthcare investor conferences and related webcast access.
Nov 06	Q3 2025 earnings	Negative	-0.3%	Revenue growth but guidance cut and continued adjusted EBITDA loss for 2025.
Oct 23	Earnings schedule	Neutral	+1.2%	Announcement of Q3 2025 results release date and investor call details.
Sep 10	Clinical data update	Positive	-5.4%	New bunion technologies and positive long-term clinical outcomes data at AOFAS.
Aug 07	Q2 2025 earnings	Positive	+7.9%	Revenue growth, improved losses, new product launches, and strong liquidity.

Pattern Detected

Recent TMCI news often showed divergence, with positive clinical and product updates followed by negative price reactions, and even neutral items sometimes seeing sharp moves.

Recent Company History

Over the last few months, TMCI has reported earnings, clinical updates, and conference participation. Q2 and Q3 2025 showed revenue growth with improving adjusted EBITDA, but guidance cuts and softer elective demand weighed on sentiment. Clinical data from the AOFAS meeting highlighted low bunion recurrence rates and new technologies, yet the stock fell 5.41% afterward. Neutral conference and scheduling announcements produced both modest gains and a large 28.33% decline. Against this backdrop, today’s debt refinancing and liquidity increase add financial flexibility to a business already focused on innovation and efficiency.

Market Pulse Summary

This announcement details a new $175 million senior secured facility that refinances prior borrowings and lifts total liquidity to about $165 million, combining cash, securities, and unused credit capacity. The five‑year structure, interest‑only period, and non‑dilutive nature support balance sheet flexibility as TMCI operates near its 52‑week low. Investors may track covenant disclosures in the related Form 8‑K and how this additional capacity supports growth and operating performance in upcoming earnings reports.

Key Terms

senior secured loan financial

"entered into a new five year $175 million senior secured loan arrangement"

A senior secured loan is a type of company loan that has first priority to be repaid and is backed by specific company assets as collateral, so lenders can seize or sell those assets if the borrower defaults. For investors, that priority and collateral make these loans safer than unsecured debt, usually meaning lower interest rates and stronger recovery prospects in a default — similar to how a mortgage has first claim on a house while a credit card does not.

term loans financial

"consisting of $60 million in term loans funded at close"

Term loans are long-term bank or lender loans with a set repayment schedule and fixed end date, similar to a mortgage or car loan for a business. They matter to investors because they create predictable interest payments and principal obligations that affect a company’s cash flow, credit risk and capacity to fund growth or return money to shareholders; heavier or expensive term loans can raise default risk and reduce future flexibility.

revolving credit facility financial

"and a $50 million revolving credit facility, each subject to certain conditions"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

SOFR financial

"The annual interest rate is equal to the applicable SOFR1 subject to a floor of 3%"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

interest-only payments financial

"The term loan provides for 48 months of interest-only payments"

A loan payment plan where the borrower pays only the interest charge for a set period, leaving the original loan amount unchanged until later. For investors, this matters because it can boost short-term cash flow and lower default risk early on, but it also concentrates repayment or raises future payments later, which can increase credit and refinancing risk for lenders and holders of related securities—think of a lease that postpones paying down the car’s price.

Form 8-K regulatory

"set forth in the Company’s Current Report on Form 8-K, filed today"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. Not financial advice.

New 5-Year Agreement Provides Continued Financial Strength & Flexibility

PONTE VEDRA, Fla., Dec. 18, 2025 (GLOBE NEWSWIRE) -- Treace Medical Concepts, Inc. (“Treace” or the “Company”) (NasdaqGS: TMCI), a medical technology company driving a fundamental shift in the surgical treatment of bunions and related midfoot deformities, today announced it has entered into a new five year $175 million senior secured loan arrangement with credit funds managed by SLR Capital Partners, consisting of $60 million in term loans funded at close, $65 million of additional term loan availability, and a $50 million revolving credit facility, each subject to certain conditions. Proceeds from the new term loan were used to prepay the Company’s $50 million term loan and $4 million drawn under its previously-existing revolving credit facility.

John T. Treace, CEO, Founder and Chairman of Treace, said, “This financing gives us a capital-efficient vehicle, helping our business stay well-capitalized as we work to expand our market and strengthen our competitive position. By securing this non-dilutive $175 million debt facility, we are further reinforcing our balance sheet and enhancing our financial flexibility to advance our commercial strategies and our goal of becoming the standard of care in bunion surgery.”

The Company’s new loan arrangement includes a maturity date of five years for both the term loan and revolving credit facility. The annual interest rate is equal to the applicable SOFR¹ subject to a floor of 3%, plus (1) 5.05% under the term loan and (2) 4% under the revolving loan. The term loan provides for 48 months of interest-only payments, which can be extended by 12 additional months.

With the completion of this refinancing, the Company now has total liquidity, consisting of cash, cash equivalents, marketable securities, and unused availability under its new credit facility (subject to meeting certain conditions), of approximately $165 million.

Armentum Partners served as financial advisor to Treace on the transaction. Additional detail regarding the foregoing financing is set forth in the Company’s Current Report on Form 8-K, filed today with the SEC.

^[1] The applicable SOFR means for (1) the term loan, the 1-month term secured overnight financing rate, reset monthly and (2) the revolving loan, the 3-month term secured overnight financing rate, reset daily.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, the Company’s expectations regarding the financial flexibility provided by the new loan facilities and its plans for using the financing to expand the market, strengthen its competitive position, and advance its commercial strategies. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of Treace’s public filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 27, 2025, and its subsequent Quarterly Reports on Form 10-Q. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of any new information, future developments or otherwise.

Internet Posting of Information
Treace routinely posts information that may be important to investors in the “Investor Relations” section of its website at www.treace.com. The Company encourages investors and potential investors to consult the Treace website regularly for important information about Treace.

About Treace Medical Concepts
Treace Medical Concepts, Inc. is a medical technology company with the goal of advancing the standard of care for the surgical management of bunion and related midfoot deformities. Bunions are complex 3-dimensional deformities that originate from an unstable joint in the middle of the foot and affect approximately 67 million Americans, of which Treace estimates 1.1 million are annual surgical candidates. Treace has pioneered and patented the Lapiplasty^®3D Bunion Correction^® System – a combination of instruments, implants, and surgical methods designed to surgically correct all three planes of the bunion deformity and secure the unstable joint, addressing the root cause of the bunion and helping patients get back to their active lifestyles. To further support the needs of surgeons and bunion patients, Treace offers its Adductoplasty^® Midfoot Correction System, designed for reproducible surgical correction of midfoot deformities, two systems for minimally invasive osteotomy procedures, namely the Nanoplasty^® 3D Minimally Invasive Bunion Correction System and the Percuplasty™ Percutaneous 3D Bunion Correction System, and the SpeedMTP^® MTP Fusion System. Treace continues to expand its footprint in the marketplace by extending its SpeedPlate^® rapid compression implant platform to new applications, as well as providing surgeons with advanced digital solutions with its IntelliGuide™ patient specific, pre-op planning and cut guide technology. For more information, please visit www.treace.com.

To learn more about Treace, connect with us on LinkedIn, X, Facebook and Instagram.

Contacts:
Treace Medical Concepts
Mark L. Hair
Chief Financial Officer
mhair@treace.net
(904) 373-5940

Investors:
Gilmartin Group
Philip Trip Taylor
IR@treace.net

FAQ

What are the total terms of Treace Medical's Dec 18, 2025 debt financing (TMCI)?

Treace secured a five-year senior secured facility up to $175M: $60M funded, $65M additional term availability, and a $50M revolver, subject to conditions.

How does the interest rate work on Treace's new term loan (TMCI)?

The term loan pays applicable SOFR with a 3% floor plus a 5.05% spread, implying a minimum annual rate of about 8.05%.

How long is Treace's interest-only period under the new TMCI term loan?

The term loan provides 48 months of interest-only payments, with an option to extend by 12 months.

What liquidity does Treace report after the Dec 18, 2025 refinancing (TMCI)?

Following the refinancing, Treace reports approximately $165M of total liquidity (cash, equivalents, marketable securities, and unused facility availability).

Did Treace use the new financing to repay prior debt (TMCI)?

Yes; proceeds were used to prepay the prior $50M term loan and $4M drawn under its previous revolving facility.