Alphatec (ATEC), a spine-focused provider of innovative solutions dedicated to revolutionizing the approach to spine surgery, entered into a new credit facility, including a $125 million revolving credit facility and $175 million term loan A, led by JPMorgan Chase Bank and TD Securities (USA). This transaction represents ATEC’s inaugural syndicated bank facility.
The new facility refinances the company’s existing debt, including its prior term loan and asset-based lending facilities with Braidwell, Pharmakon Advisors and MidCap Financial Trust, simplifies its capital structure, reduces borrowing costs and extends maturities to 2031. At close, the facility carries an interest rate of SOFR plus 275 basis points and is expected to reduce interest expense by more than $6 million annually, with the potential to generate more than $35 million of savings over the life of the facility. The new facility also includes an incremental $150 million accordion feature, providing additional flexibility as the company grows.
“This transaction marks an important step in the improvement of our capital structure,” Todd Koning, chief financial officer of ATEC, said. “By lowering our cost of capital, extending our maturity profile and partnering with a leading bank syndicate, we have strengthened our financial foundation. This new facility reflects the maturation of our business and positions us with a more scalable and flexible financing structure as we continue to grow. We appreciate the support of our prior lending partners, Braidwell, Pharmakon and MidCap, who have been important contributors to ATEC’s growth.”
