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 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
Chief Executive Officer. "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."
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 products 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
affiliate, Scient'x S.A.S., via a direct sales force in France,
Italy and the United Kingdom and via independent distributors in
the rest of Europe, the Middle East and Africa. In Latin America,
the Company conducts its business through its subsidiary, Cibramed
Produtos Medicos. In Japan, the Company markets its products
through its subsidiary, Alphatec Pacific, Inc. In the rest of
Asia and Australia, the Company sells its and Scient'x's products
through its and Scient'x's distributors.
The Alphatec Holdings, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3520
About MidCap Financial, LLC
MidCap Financial is a commercial finance company focused on
middle market lending in the broad national healthcare industry.
MidCap specializes in $5 million to $200 million loans. The company
is headquartered in Bethesda, MD, with offices in Chicago and Los
Angeles, and focuses in four areas:
-Asset-Based working capital loans to healthcare providers
collateralized by third-party accounts receivable and other
assets;
-Leveraged loans to healthcare companies backed by private
equity sponsors;
-Life Sciences loans to VC-backed and public pharmaceutical,
biotech, and medical device companies;
-Real Estate loans to skilled nursing facilities, senior housing
properties, and medical office buildings
Additional information about MidCap Financial can be found at
www.midcapfinancial.com
Forward Looking Statements
This press release may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 that involve risks and uncertainty. Such statements are
based on management's current expectations and are subject to a
number of risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. Alphatec Spine cautions investors that there can be no
assurance that actual results or business conditions will not
differ materially from those projected or suggested in such
forward-looking statements as a result of various factors.
Forward-looking statements include, with respect to the new credit
facility, references to the size of the borrowing base, the
availability of the mezzanine credit, additional capital
flexibility, the amount debt service costs, and the ability to have
the new facility be cash-flow positive as compared to the prior
facility. In addition, forward-looking statements include the
Company's ability to develop and commercialize new products
internally, and its ability to successfully pursue and
commercialize complementary acquisitions of new products and
technologies. The words "believe," "will," "should," "expect,"
"intend," "estimate" and "anticipate," variations of such words and
similar expressions identify forward-looking statements, but their
absence does not mean that a statement is not a forward-looking
statement. The important factors that could cause actual
operating results to differ significantly from those expressed or
implied by such forward-looking statements include, but are not
limited to; the uncertainty of success in developing new products
or products currently in Alphatec Spine's pipeline; the uncertainty
of success in acquiring new products or technologies; the
successful global launch of the Company's new products and the
products in its development pipeline; failure to achieve acceptance
of Alphatec Spine's products by the surgeon community; failure to
successfully implement streamlining activities to create operating
cost savings; failure to successfully begin in-house manufacturing
of certain products; failure to obtain FDA clearance or approval
for new products, or unexpected or prolonged delays in the process;
Alphatec Spine's ability to develop and expand its U.S. and/or
global revenues; continuation of favorable third party payor
reimbursement for procedures performed using Alphatec Spine's
products; unanticipated expenses or liabilities or other adverse
events affecting cash flow or Alphatec Spine's ability to
successfully control its costs or achieve profitability;
uncertainty of additional funding; Alphatec Spine's ability to
compete with other competing products and with emerging new
technologies; product liability exposure; failure to meet all
financial obligations in the Cross Medical Settlement; patent
infringement claims and claims related to Alphatec Spine's
intellectual property. Please refer to the risks detailed from time
to time in Alphatec Spine's SEC reports, including its Annual
Report Form 10-K for the year ended December 31, 2011 and Quarterly
Report on Form 10-Q for the first quarter of 2012, filed on March
5, 2012 and May 8, 2012, respectively, with the Securities and
Exchange Commission, as well as other filings on Form 10-Q and
periodic filings on Form 8-K. Alphatec Spine disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise, unless required by law.
CONTACT: Investor/Media Contact:
Mark Francois
Senior Director, Investor Relations
Alphatec Spine, Inc.
(760) 494-6610
mfrancois@alphatecspine.com
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