Alphatec Holdings, Inc., the parent company of Alphatec Spine, Inc., a medical device company that designs, develops, manufactures and markets products for the surgical treatment of spine disorders, with a focus on treating conditions related to the aging spine, announced that it has entered into a new, three-year revolving line of credit with MidCap Financial, replacing the company’s former credit facility.

The new credit line provides the company with access to up to $40 million, plus an opportunity to borrow an additional $10 million of mezzanine credit, with the actual borrowing base being subject to limitation established by the company’s eligible accounts receivable and inventory. The new facility offers more favorable terms.

Alphatec Spine intends to use the facility for working capital and other general corporate purposes after repayment of balances related to its prior credit facility of approximately $28 million.

“We are very pleased to begin our new business relationship with MidCap Financial,” said Les Cross, Alphatec Spine’s chairman and CEO. “We consider our new revolving line of credit to be a critical asset of the company as we continue to grow our business in the U.S. and international spine markets. It offers additional capital flexibility with lower debt service costs, and beginning with the fourth quarter this year, we expect the new facility to become net cash flow positive, when compared to our prior credit agreement. In turn, this should strengthen our ability to develop and commercialize new products internally, while allowing us to selectively pursue complementary acquisitions of new products and technologies that we believe will have a short road to commercialization. We appreciate the support and commitment from MidCap in helping Alphatec Spine increase long-term shareholder value through the achievement of our growth goals. We also appreciate the support that our former credit partner, Silicon Valley Bank, has shown Alphatec Spine over the years.”

“We have known and followed the Alphatec management team for several years,” said Garrett Fletcher, MidCap Financial’s Segment Leader, Asset Based Finance. “We are genuinely pleased to be their new finance partner and look forward to providing the company with flexible capital to facilitate its continued growth and expansion.”

MidCap Financial is a commercial finance company focused on middle-market lending in the broad national healthcare industry.