Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of Alphatec Spine, Inc., a 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, announced today that it has amended and restated its loan agreement with Silicon Valley Bank that provides for a $32 million working capital revolving line of credit.
The new credit facility is based on the Company's working capital balances for eligible accounts receivable and inventory. The maturity date of the credit facility is October 2013. The credit facility provides a significant reduction in interest expense and terminates the principal amortization payments that existed in the prior credit facility.
The proceeds of the new credit facility shall primarily be used to pay off the Company's existing credit facilities with Silicon Valley Bank and Oxford Finance Corporation.
"We are pleased to extend our credit and commercial banking relationship with Silicon Valley Bank. The new facility provides a significant reduction in our current debt service costs, which allows us to have more flexibility in the funding of our operations," said Dirk Kuyper, the Company's President and Chief Executive Officer.
Michael White, Senior Relationship Manager, Life Sciences, Silicon Valley Bank added, "We value our relationship with Alphatec Spine and are pleased to continue providing them with the financing and banking services they need to grow their business both here in the U.S. and internationally."
A copy of the credit agreement referenced in this press release will be filed with the SEC by the Company and the foregoing description is subject to the actual terms of the agreement.
Risk factors for serious inflammatory conditions in IBD patients identified