Alphatec Holdings, a provider of innovative spine surgery solutions, closed its expanded $30 million secured financing facility with Squadron Medical Finance Solutions.
Any amounts drawn will be used for general corporate purposes. The additional borrowings under the credit facility will mature in parallel with the current secured financing from Squadron and bear interest at LIBOR plus 8% per annum, subject to a 10% floor and a 13% ceiling. For any draws, interest-only payments will be due monthly through May 2021, followed by principal payable in 29 equal monthly installments beginning June 2021 and a lump-sum payment at maturity in November 2023. To date, no amounts have been drawn on the new credit facility.
In connection with the additional financing commitment, ATEC will issue a warrant to Squadron to purchase 4.8 million shares of ATEC common stock at an exercise price of $2.17, at the time of the first draw under the credit facility.
“We are pleased to be expanding our partnership with Squadron,” said Jeff Black, ATEC CFO. “This additional financial commitment comes at a critical time for ATEC, and provides us with runway to execute on our growth strategy.”
Squadron Medical Finance Solutions assists orthopedic OEMs in achieving their business objectives by offering financing of surgical instruments and implant sets, or by providing debt financing to support the broader capital requirements of growing companies.
