New York, June 2 - Alphatec Holdings, Inc. priced its $83.7 million initial public offering of common stock at $9.00 per share, below the target price range of $11.00 to $12.00.
Deutsche Bank Securities and First Albany Capital were joint bookrunners with RBC Capital Markets as co-manager.
The deal has a greenshoe for 1.395 million shares.
Alphatec will use $35.7 million of the $71.4 million net proceeds to meet redemption obligations and to pay dividends to existing shareholders. A further $26.3 million will be used to expand the company's sales and marketing, to support its research and development, to fund the clearance or approval and subsequent commercialization of near-term product candidates, and to acquire complementary businesses, products or technologies, or to obtain rights to complementary technologies.
An additional $9.4 million will be used to repay debt, including repaying $6.8 million outstanding on the company's revolving credit facility with Bank of the West and $2.6 million to repay a loan to chairman, president and chief executive officer Shunshiro "Roy" Yoshimi.
Following the IPO, Alphatec has 34.76 million shares outstanding.
Alphatec is a Carlsbad, Calif., medical device company concentrating on products for the surgical treatment of spine disorders.
| Issuer: | Alphatec Holdings, Inc.
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| Issue: | Initial public offering
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| Gross proceeds: | $83.7 million
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| Net proceeds: | $71.4 million
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| Shares: | 9.3 million
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| Greenshoe: | 1.395 million shares
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| Price: | $9.00
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| Pricing date: | June 1, after close
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| Bookrunners: | Deutsche Bank Securities, First Albany Capital
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| Guidance: | $11.00 to $12.00
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| Stock symbol: | Nasdaq: ATEC
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