NEW YORK--(BUSINESS WIRE)--Deerfield Management Company announced today that it has provided Alphatec Spine (NASDAQ:ATEC) with up to $50 million in financing. The financing supplies Alphatec with capital to satisfy certain obligations arising out of the OrthoTec, LLC litigation and growth capital for future commercial activities.
Alphatec Spine has the option to draw up to $50 million in one or more increments prior to January 30th, 2015. With each disbursement, Deerfield will receive a transaction fee of 2.5% of the amount drawn. Amounts drawn accrue interest at 8.75% per annum, payable quarterly in cash, and must be repaid in five years. Alphatec additionally issued Deerfield 6.25 million warrants and will issue up to an additional 10 million warrants on a pro rata basis as the facility is drawn down. The warrants will expire on the sixth anniversary of the agreement.
"Deerfield has been a long-term investor in Alphatec and is supportive of the Company’s growth plan. Our goal with this facility is to help Alphatec move beyond this legal matter and to provide additional capital for managing its growth," stated Steve Hochberg, a partner at Deerfield Management.
"Deerfield has demonstrated its commitment to Alphatec's future potential and we value the continued support that it is providing through this additional financial investment," said Les Cross, Chairman and CEO of Alphatec Spine. "With this legal matter with OrthoTec behind us, we are able to focus our full attention on strengthening and growing our business based on the strong foundation and momentum we have established," added Mr. Cross.
About Alphatec Spine
Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec Holdings, Inc., is a medical device company that designs, develops, manufactures and markets physician-inspired products and solutions for the treatment of spinal disorders associated with trauma, congenital deformities, disease and degeneration. The Company's mission is to combine innovative surgical solutions with world-class customer service to improve outcomes and patient quality of life. The Company and its affiliates market products in the U.S. and in over 50 countries internationally via a direct sales force and independent distributors. Additional information can be found at www.alphatecspine.com.
About Deerfield Management Company
Deerfield is an investment management firm, committed to advancing healthcare through investment, information and philanthropy. For more information about Deerfield, please visit www.deerfield.com