Alphatec draws $10 million under $30 million facility with Squadron

By Sarah Lizee

Olympia, Wash., June 27 – Alphatec Holdings, Inc. drew $10 million under its $30 million financing facility with Squadron Medical Finance Solutions, LLC on June 21, according to an 8-K filing with the Securities and Exchange Commission.

The funds drawn down against the facility 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.

Interest-only payments on drawn amounts are 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, $20 million remains undrawn on the overall credit facility.

In connection with the drawdown, Alphatec issued a warrant to Squadron and its affiliate to purchase up to 4.8 million shares of Alphatec common stock at an exercise price of $2.17. The warrants have a seven-year term and are exercisable immediately.

The company entered into the financing facility in late March.

Alphatec is a Carlsbad, Calif.-based medical device company.

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