Goodwin’s Capital Markets team advised Alphatec Holdings, Inc. (NASDAQ: ATEC) on its Rule 144A offering of $405.0 million aggregate principal amount of its 0.75% convertible senior notes due 2030. The offering was upsized from $300.0 million to $350.0 million and includes the full exercise of the initial purchasers’ option to purchase $55.0 million of additional notes. The initial conversion price of the notes represents a premium of approximately 32.5% over the reference price of $11.73 per share. In connection with the offering, Alphatec and certain investment bank dealers entered into capped call transactions, which mitigate equity dilution and/or offset payments due upon conversion of the notes and effectively raise the conversion price of the notes to approximately $23.46 per share, a 100% premium over the reference price.
Alphatec, through its wholly owned subsidiaries, Alphatec Spine, Inc., EOS imaging S.A.S. and SafeOp Surgical, Inc., is a medical device company dedicated to revolutionizing the approach to spine surgery through clinical distinction. Alphatec’s Organic Innovation MachineTM is focused on developing new approaches that integrate seamlessly with the Company’s expanding AlphaInformatiX Platform to better inform surgery and more safely and reproducibly achieve the goals of spine surgery. Alphatec’s vision is to become the Standard Bearer in Spine.
Goodwin’s product team consisted of John Servidio, Jim Barri and Tom Underwood. The corporate team consisted of Edwin O’Connor, Kim De Glossop, Janet Hsueh, Li Chang and Michelle Wong. Dan Karelitz and Garret Gaughan provided tax advice.
For more information, please see Alphatec’s pricing press release for the offering.