Alphatec pushes closing date closer in $80m sale of int’l biz to Globus

Alphatec (NSDQ:ATEC) today released updated information on the $80 million sale of its international operations and distribution channels to Globus Medical (NYSE:GMED), pushing the close date from October to early to mid-September.

Alphatec said the deal includes a 5-year senior secured credit facility for up to $30 million from Globus Medical.

The deal is still subject to standard closing conditions, according to a recently posted SEC filing.

Alphatec said it plans to use portions of the cash offering to pay down its approximately $69 million of existing debt and debt-related costs. The Carlsbad, Calif.-based company said the funds, as well as a revolving line of credit from MidCap Financial will support its transition to a U.S. market based company.

Through the deal, Globus will pick up all of Alphatec’s international distribution operations and agreements, including subsidiaries in Japan and Brazil and sales operations in the U.K. and Italy.

Alphatec is slated to supply products to Globus for up to 5 years as part of the agreement, and will not compete in the international market for the term of the supply agreement plus an additional 2 years.

Alphatec said closing conditions for the deal include entry into credit agreements with MidCap Financial and Globus.

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