Alphatec signs $175.0 million term loan and $125.0 million revolver

The credit agreement

Alphatec Holdings, Inc. and certain of its domestic subsidiaries, as guarantors, entered into a senior secured credit agreement on May 1, 2026 with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders and issuing banks party to it. The agreement provides a $175.0 million term loan A and a $125.0 million revolving credit facility.

The facilities mature on the fifth anniversary of the closing date, subject to a springing maturity. The springing period begins on December 14, 2029, 91 days before the scheduled maturity of the company's existing 0.75% convertible senior notes due 2030, and runs until March 15, 2030 or, if earlier, the date the principal of those notes or any refinancing falls to $85.0 million or less. It applies only if the company fails to keep liquidity, meaning unrestricted cash held in the U.S. plus availability under the revolver, at or above the principal of the 2030 notes plus $100.0 million.

Loans bear interest at Term SOFR or the Alternate Base Rate, plus a margin based on the senior secured net leverage ratio. For Term Benchmark Loans the margin ranges from 2.00% to 3.50%. For ABR Loans it ranges from 1.00% to 2.50%. The facilities are secured by substantially all of the assets of the company and its subsidiary guarantors.

The company must keep a senior secured net leverage ratio of no more than 3.00 to 1.00, with an election to step up to 3.50 to 1.00 after permitted acquisitions of $75.0 million or more, and a fixed charge coverage ratio of at least 2.00 to 1.00. Both are tested quarterly beginning with the quarter ending September 30, 2026.

The term loan amortizes at 0.625% of the amount advanced each quarter for the first eight full quarters, 1.25% for the ninth through sixteenth, and 2.50% after that, with the balance due at maturity. Commitment fees on unused revolver commitments range from 0.20% to 0.35% a year.

What the loans replaced

On May 1, 2026, in connection with the new agreement, the company terminated its prior credit agreements and repaid in full all outstanding principal, accrued interest and fees under each of them. Those were a credit, security and guaranty agreement dated as of September 29, 2022 with MidCap Funding IV Trust as administrative agent, and a credit, security and guaranty agreement dated as of January 6, 2023 with Wilmington Trust, National Association, as agent.

The 8-K says the company borrowed $175.0 million under the term loan and $40.0 million under the revolver on the closing date. Proceeds, together with cash on hand, repaid the prior debt and paid certain costs, fees and expenses of the transaction. The company issued a press release on May 5, 2026 about the credit agreement and another with its results for the period ended March 31, 2026.

The banks

JPMorgan Chase Bank, N.A. is the administrative agent, and the credit agreement was signed with the lenders and issuing banks party to it. The 8-K does not name those other lenders, any arranger or syndication agent, or counsel, and it names no placement agent or underwriter. The 8-K was signed by J. Todd Koning, executive vice president and chief financial officer.

The company's financial record

The 10-K, filed February 24, 2026, reports a net loss of $143.4 million for 2025, against $162.1 million for 2024. Cash provided by operations was $45.2 million in 2025, against cash used in operations of $44.7 million in 2024. Year-end 2024 cash and cash equivalents were $138.8 million.

The 2025 net loss of $143.4 million sits alongside an operating cash inflow of $45.2 million, and the new facilities tie their maturity to the 2030 convertible notes through the springing maturity and liquidity test described above.

Report an error

Companies in this story

ATECAlphatec Holdings, Inc.NASDAQ · United StatesOpen the starter desk