Deal with Deerfield expires on Jan. 30, 2015, also includes warrants
By Devika Patel
Knoxville, Tenn., March 17 - Alphatec Spine, Inc. may raise $50 million through an 8.75% financing with Deerfield Management Co., according to a press release from the investor.
Alphatec Spine may draw up to $50 million in one or more increments until Jan. 30, 2015. With each increment, Deerfield will receive a 2.5% transaction fee.
The investor also will receive up to 16.25 million six-year warrants.
Proceeds will be used to satisfy obligations arising out of the OrthoTec, LLC litigation and provide growth capital for commercial activities.
Alphatec Spine is a subsidiary of Alphatec Holdings, Inc., a Carlsbad, Calif.-based 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.
| Issuer: | Alphatec Spine, Inc.
|
| Issue: | Financing
|
| Amount: | $50 million
|
| Tenor: | Jan. 30, 2015
|
| Coupon: | 8.75%
|
| Warrants: | Up to 16.25 million warrants
|
| Warrant expiration: | Six years
|
| Investor: | Deerfield Management Co.
|
| Fees: | 2.5%
|
| Settlement date: | March 17
|
| Stock symbol: | Nasdaq: ATEC
|
| Stock price: | $1.39 at close March 14
|
| Market capitalization: | $154.21 million
|
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