Alphatec Holdings, Inc. announced it has entered into non-dilutive secured term loan agreement for gross proceeds of $150 million on January 6, 2023. The transaction will include participation from new lender, Braidwell LP. The secured term loan agreement provides for a total aggregate principal amount of $150 million.

On the same date, the company has received initial term loan facility in the amount of $100 million, which was funded in its entirety by new lender, Braidwell LP and a delayed draw term loan facility in an aggregate principal amount not to exceed $50 million, which, subject to certain conditions set forth in the term loan agreement, may be drawn until the date that is 18 months after the initial term loan facility date. Loans borrowed pursuant to the term loan agreement bear interest at a rate per annum equal to SOFR interest rate with a floor of 3 % plus 5.75%. The term loans do not amortize and will be interest-only until the January 6, 2028 maturity date, at which time all unpaid principal and accrued and unpaid interest will become due and payable. The company is obligated to pay an undrawn fee on the aggregate unused commitments under the delayed draw term loan in an amount equal to 1% per annum of the average daily undrawn portion of the delayed draw term loan commitments. In addition, the company is obligated to pay certain upfront fees and agency fees in connection with the term loan agreement. The company may pay all or a portion of the outstanding principal and accrued unpaid interest under the term loan agreement at any time upon prior notice to the term lenders subject to a repayment fee schedule of, depending on when the repayment is made, 3% of the principal amount of any such repayment during the first 12 months of the term loan agreement, 2% of the principal amount of any such repayment during months 13 through 24 of the term loan agreement, and 1% of the principal amount of any such repayment thereafter and an exit fee equal to 3.25% of the principal amount of any such repayment. The term loan agreement contains customary mandatory prepayment provisions. Once repaid or prepaid, the Term Loans may not be reborrowed. The term loan agreement includes customary conditions to borrowing, representations and warranties and covenants, including affirmative covenants and negative covenants that restrict the credit parties? and their subsidiaries? ability to, among other things, incur indebtedness, grant liens, merge or consolidate, make investments, dispose of assets, make acquisitions, pay dividends or make distributions, repurchase stock and enter into certain transactions with affiliates, in each case subject to certain exceptions. The term loan agreement also has a financial covenant requiring the credit parties to maintain at all times liquidity of at least $25 million plus 25% of the aggregate principal amount of any term loans incurred under the delayed draw term loan facility. The term loan agreement also contains customary events of default, including among other things, the company?s failure to make any principal or interest payments when due, the occurrence of certain bankruptcy or insolvency events, or the company?s breach of the covenants under the term loan agreement. Upon the occurrence of an event of default, the term lenders may, among other things, accelerate the company?s obligations under the term loan agreement.