Alphatec Holdings, Inc. 8-K

What Happened

• On May 1, 2026 Alphatec Holdings, Inc. and certain domestic subsidiaries entered into a senior secured Credit Agreement with JPMorgan Chase Bank, N.A. as administrative agent. The Credit Agreement provides a $175.0 million Term Loan A and a $125.0 million Revolving Credit Facility (totaling $300.0 million). On the Closing Date the company drew $175.0 million on the Term Loan A and $40.0 million under the Revolving Credit Facility.
• Proceeds, together with cash on hand, were used to repay in full the company’s prior ABL and 2023 term loan agreements and to pay transaction fees and expenses. The new Credit Facilities mature on the fifth anniversary of the Closing Date, subject to a springing maturity tied to the company’s outstanding 0.75% convertible senior notes due 2030 under certain liquidity conditions.

Key Details

• Facility size and draws: $175M Term Loan A (U.S. dollars only) and $125M Revolver (multi‑currency; $40M borrowed at close).
• Interest and fees: Loans bear interest based on Term SOFR or Alternate Base Rate (ABR) for USD loans, or applicable foreign rates for non‑USD loans, plus a margin that varies with Senior Secured Net Leverage Ratio (ABR margin 1.00%–2.50%; Term Benchmark/RFR margin 2.00%–3.50%). Commitment fees on unused revolver: 0.20%–0.35%.
• Amortization & capacity: Quarterly amortization on Term Loan A (0.625% for first eight full quarters, 1.25% for quarters 9–16, then 2.50% thereafter) with remaining balance at maturity; accordion feature potentially adds up to the greater of $150M or 100% of Consolidated EBITDA (subject to conditions).
• Covenants & security: Requires Senior Secured Net Leverage Ratio ≤ 3.00x (can step to 3.50x after qualifying acquisitions) and Fixed Charge Coverage Ratio ≥ 2.00x, tested quarterly beginning with the quarter ending Sept 30, 2026. Facilities are guaranteed by certain subsidiaries and secured by substantially all assets (subject to customary exceptions).

Why It Matters

• This refinancing provides Alphatec with immediate liquidity and replaces prior facilities, reducing near‑term refinancing risk and establishing a five‑year credit backstop. The draw at closing and the revolver availability give working capital and flexibility to manage operations and obligations.
• The facility is secured and includes financial covenants that could limit the company’s ability to take on additional debt, make acquisitions, pay distributions or grant liens. The springing maturity tied to the 2030 Convertible Notes and the leverage/test thresholds mean investors should monitor convertible note status, unrestricted cash, and covenant compliance in upcoming quarters.
• Interest cost is variable (SOFR/ABR + margin tied to leverage), so borrowing costs will move with market rates and the company’s leverage profile.