Alphatec files for $149.5 million IPO

New York, Feb. 6 - Alphatec Holdings, Inc. registered to sell up to $149.5 million of common stock in an initial public offering.

First Albany Capital will be bookrunner for the offering, according to an S-1 filing with the Securities and Exchange Commission.

No per share price or number of shares was included in the filing.

Alphatec intends to apply for its stock to be quoted on the Nasdaq National Market under the symbol "ATEC."

Carlsbad, Calif.-based Alphatec is a medical device company concentrating on products for the surgical treatment of spine disorders.

Its principal products are a variety of spinal implant products and systems comprised of components such as spine screws, spinal spacers and plates.

For the nine months to Sept. 30, 2005, Alphatec reported a loss of $13.22 million on sales revenues of $26.75 million.

Proceeds from the IPO will be used to expand the company's sales and marketing activities, to support its research and development, to fund the clearance or approval and subsequent commercialization of its near-term product candidates, and to acquire complementary businesses, products or technologies.

Alphatec also plans to repay borrowings under its revolving credit facility with Bank of the West and to repay a loan from Shunshiro "Roy" Yoshimi, the chairman, president and chief executive officer of Alphatec Pacific, which bears an effective interest rate of 18.46%.

Further proceeds will be used to satisfy redemption, dividend and liquidation obligations to the company's existing stockholders. Under the terms of its certificate of incorporation, Alphatec is required to use 50% of the net proceeds from the IPO, excluding any proceeds from the greenshoe, to satisfy redemption, dividend and liquidation obligations to holders of its preferred stock, rolling common stock, series A common stock, series A-1 common stock, series B common stock and series C common stock.

Proceeds from the greenshoe are required to be used to redeem the company's new redeemable preferred stock.

The maximum proceeds Alphatec will retain is $65 million.

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