BioPharma Credit gains access to spine surgery specialist Alphatec

BioPharma Credit has made a new investment of $35 million Tranche a $200 million senior secured loan to Alphatec Holdings, Inc. BioPharma Credit Investments V (Master) LP also took advantage of an additional tranche of $35 million.

The existing loan was assigned by Braidwell Transaction Holdings LLC – Series I – to the BioPharma funds; the remaining $130 million of the loan remains intact.

Alphatec Holdings, based in the USA, is a publicly traded medical device company with a current position Market capitalization of around 745 million US dollars (ticker: ATEC – NASDAQ). ATEC's Organic Innovation MachineTM focuses on developing new approaches that seamlessly integrate with expansion alpha InformatiX platform to better inform surgery and achieve spinal surgery goals more safely and reproducibly. ATEC's vision is to be the pioneer in Spine. ATEC reported net sales of $435 million for the first nine months of 2024.

The loan has a term until January 2028 and bears interest over a period of 3 months SOFR plus 5.75% per annum subject to a SOFR floor of 3.00%. Upon signing the assignment agreement, the company also received a 1% fee on its $35 million investment.

The loan includes:

• i) a repayment premium of 3% of the principal amount of such redemption during the first 12 months after the signing date, 2% of the principal amount of such redemption during months 13 to 24 after the signing date and 1% of the principal amount of such redemption thereafter but before the due date , as well as
• (ii) an exit fee of 3.25% of the principal amount of any redemption or advance payment on that date of redemption or advance payment.

BPCR: BioPharma Credit gains access to spine surgery specialist Alphatec