BioPharma Credit has made a new investment in a US$35m tranche of a US$200m senior secured loan to Alphatec Holdings, Inc. BioPharma Credit Investments V (Master) LP also took an additional US$35m tranche.
The pre-existing loan was assigned to the BioPharma funds by Braidwell Transaction Holdings LLC – Series I, it will retain the remaining US$130m of the loan.
Based in the US, Alphatec Holdings is a publicly traded medical device company with a current market capitalisation of about US$745m (Ticker: ATEC – NASDAQ). ATEC’s Organic Innovation MachineTM is focused on developing new approaches that integrate seamlessly with its expanding Alpha InformatiX Platform to better inform surgery and more safely and reproducibly achieve the goals of spine surgery. ATEC’s vision is to be the standard bearer in Spine. ATEC reported net sales of US$435m for the first nine months of 2024.
The loan matures in January 2028 and bears interest at 3-month SOFR plus 5.75% per annum subject to a 3.00% SOFR floor. The company also received a 1% fee on its US$35m investment at the signing of the assignment agreement.
The loan includes:
- i) a repayment premium of 3% of the principal amount of any such repayment during the first 12 months after the signing date, 2% of the principal amount of any such repayment during months 13 through 24 after the signing date, and 1% of the principal amount of any such repayment thereafter but prior to the maturity date, as well as
- (ii) an exit fee of 3.25% of the principal amount of any repayment or prepayment on such date of repayment or prepayment.
BPCR : BioPharma Credit gets exposure to spine surgery specialist Alphatec