Deerfield Announces up to a $50 Million Investment in Alphatec Spine

  Deerfield Announces up to a $50 Million Investment in Alphatec Spine

Business Wire

NEW YORK -- March 17, 2014

Deerfield Management Company announced today that it has provided Alphatec
Spine (NASDAQ:ATEC) with up to $50 million in financing. The financing
supplies Alphatec with capital to satisfy certain obligations arising out of
the OrthoTec, LLC litigation and growth capital for future commercial

Alphatec Spine has the option to draw up to $50 million in one or more
increments prior to January 30^th, 2015. With each disbursement, Deerfield
will receive a transaction fee of 2.5% of the amount drawn. Amounts drawn
accrue interest at 8.75% per annum, payable quarterly in cash, and must be
repaid in five years. Alphatec additionally issued Deerfield 6.25 million
warrants and will issue up to an additional 10 million warrants on a pro rata
basis as the facility is drawn down. The warrants will expire on the sixth
anniversary of the agreement.

"Deerfield has been a long-term investor in Alphatec and is supportive of the
Company’s growth plan. Our goal with this facility is to help Alphatec move
beyond this legal matter and to provide additional capital for managing its
growth," stated Steve Hochberg, a partner at Deerfield Management.

"Deerfield has demonstrated its commitment to Alphatec's future potential and
we value the continued support that it is providing through this additional
financial investment," said Les Cross, Chairman and CEO of Alphatec Spine.
"With this legal matter with OrthoTec behind us, we are able to focus our full
attention on strengthening and growing our business based on the strong
foundation and momentum we have established," added Mr. Cross.

About Alphatec Spine

Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec Holdings, Inc., is
a medical device company that designs, develops, manufactures and markets
physician-inspired products and solutions for the treatment of spinal
disorders associated with trauma, congenital deformities, disease and
degeneration. The Company's mission is to combine innovative surgical
solutions with world-class customer service to improve outcomes and patient
quality of life. The Company and its affiliates market products in the U.S.
and in over 50 countries internationally via a direct sales force and
independent distributors. Additional information can be found at

About Deerfield Management Company

Deerfield is an investment management firm, committed to advancing healthcare
through investment, information and philanthropy. For more information about
Deerfield, please visit


Deerfield Management Company
Karen Heidelberger, 212-692-7140
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