Alphatec Spine Announces Debt Refinancing
01 November 2010 - 9:05PM
Alphatec Holdings, Inc. (Nasdaq:ATEC), 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 today that it has amended and
restated its loan agreement with Silicon Valley Bank that provides
for a $32 million working capital revolving line of credit.
The new credit facility is based on the Company's working
capital balances for eligible accounts receivable and inventory.
The maturity date of the credit facility is October 2013. The
credit facility provides a significant reduction in interest
expense and terminates the principal amortization payments that
existed in the prior credit facility.
The proceeds of the new credit facility shall primarily be used
to pay off the Company's existing credit facilities with Silicon
Valley Bank and Oxford Finance Corporation.
"We are pleased to extend our credit and commercial banking
relationship with Silicon Valley Bank. The new facility provides a
significant reduction in our current debt service costs, which
allows us to have more flexibility in the funding of our
operations," said Dirk Kuyper, the Company's President and Chief
Executive Officer.
Michael White, Senior Relationship Manager, Life Sciences,
Silicon Valley Bank added, "We value our relationship with Alphatec
Spine and are pleased to continue providing them with the financing
and banking services they need to grow their business both here in
the U.S. and internationally."
A copy of the credit agreement referenced in this press release
will be filed with the SEC by the Company and the foregoing
description is subject to the actual terms of the agreement.
About Alphatec Spine
Alphatec Spine, Inc. is a wholly owned subsidiary of Alphatec
Holdings, Inc. (Nasdaq:ATEC). Alphatec Spine is a medical device
company that designs, develops, manufactures and markets products
for the surgical treatment of spine disorders, primarily focused on
the aging spine. The Company's mission is to combine world-class
customer service with innovative, surgeon-driven design that will
help improve the aging patient's quality of life. The Company is
poised to achieve its goal through new solutions for patients with
osteoporosis, stenosis and other aging spine deformities, improved
minimally invasive products and techniques and integrated biologics
solutions. In addition to its U.S. operations, the Company also
markets its products in over 50 international markets through its
subsidiary, Scient'x S.A., via a direct salesforce in France, Italy
and the United Kingdom and via independent distributors in the rest
of Europe, the Middle East and Africa, South America and Latin
America. In Asia and Australia, the Company markets its products
through its subsidiary, Alphatec Pacific, Inc, and through
Scient'x's distributors in China, Korea and Australia.
The Alphatec Holdings, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3520
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by safe harbors created thereby.
Shareholders are cautioned that all forward-looking statements are
based largely on Alphatec's expectations and involve risks and
uncertainties, some of which cannot be predicted or are beyond
Alphatec's control. Statements containing a projection of revenue,
earnings, EBITDA, cost and revenue synergies, additional market
opportunities, future economic performance, product development
timelines, the acceptance of products by the surgeon community and
the Company's ability to achieve the financial covenants set forth
in the amended and restated credit agreement are just a few
examples of forward-looking statements. Some factors that could
realistically cause results to differ materially from those
projected in the forward-looking statements include product
liability litigation and litigation related to the infringement of
intellectual property of a third party; the impact of healthcare
reform and regulations in the United States and other
jurisdictions; the Company's ability to meet its financial
guidance; the growth rate of the spine market related to aging and
elderly patients; the ability to achieve regulatory approval for
products in the Company's development pipeline and the successful
adoption of such products once approved; the Company's ability to
develop and expand its business in the globally; the Company's
ability to compete with other competing products and with emerging
new technologies; continuation of favorable third party payor
reimbursement for procedures performed using the Company's
products; unanticipated expenses or liabilities or other adverse
events affecting cash flow or the Company's ability to successfully
control its costs or achieve profitability; and the uncertainty of
additional funding. Additional factors that could cause results to
differ materially from those described in the forward-looking
statements can be found in the Company's Annual Report on Form 10-K
and in the Company's other filings with the Securities and Exchange
Commission (the "SEC") available at the SEC's website at
http://www.sec.gov.
About Silicon Valley Bank
Silicon Valley Bank is the premier commercial bank for companies
in the technology, life science, venture capital, private equity
and premium wine industries. SVB provides a comprehensive suite of
financing solutions, treasury management, corporate investment and
international banking services to its clients worldwide. Through
its focus on specialized markets and extensive knowledge of the
people and business issues driving them, Silicon Valley Bank
provides a level of service and partnership that measurably impacts
its clients' success. Founded in 1983 and headquartered in Santa
Clara, Calif., the company serves clients around the world through
26 U.S. offices and international operations in China, India,
Israel and the United Kingdom. Silicon Valley Bank is a member of
global financial services firm SVB Financial Group (Nasdaq:SIVB),
with SVB Analytics, SVB Capital, SVB Global and SVB Private Client
Services. More information on the company can be found at
www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the
commercial banking operation of SVB Financial Group. Banking
services are provided by Silicon Valley Bank, a member of the FDIC
and the Federal Reserve System. SVB Private Client Services is a
division of Silicon Valley Bank. SVB Financial Group is also a
member of the Federal Reserve System.
CONTACT: Alphatec Spine, Inc.
Michael O'Neill, Chief Financial Officer
(760) 494-6746
investorrelations@alphatecspine.com
Westwicke Partners
Lynn C. Pieper
(415) 202-5678
lynn.pieper@westwicke.com
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