ALPHATEC HOLDINGS, INC. Item 1.01 Entry into a Material Definitive Agreement.
On
Availability of the Loans under the Revolving Facility at any time is subject to
the Borrowing Base, which is equal to (i) the sum of (a) 85% of the Eligible
Accounts (the accounts receivable of the Borrowers' qualified under the terms of
the Credit Agreement) plus (b) 40% of the Eligible Inventory (the inventory of
the Borrowers' qualified under the terms of the Credit Agreement, and in any
event not to exceed the lesser of
The Loans bear interest at the sum of Term SOFR plus 3.5% per annum, and mature
on the earlier of (i)
As security for its obligations under the Credit Agreement, the Borrowers granted the Agent, for the benefit of the Lenders, a continuing security interest in substantially all of their assets, excluding intellectual property and subject to certain customary exceptions. The obligations of the Borrowers are also secured by a first priority lien on the equity interests held by the Borrowers in their subsidiaries.
The Credit Agreement includes customary conditions to borrowing, representations
and warranties and covenants, including affirmative covenants and negative
covenants that restrict the Borrowers' and their subsidiaries' ability to, among
other things, incur indebtedness, grant liens, merge or consolidate, make
investments, dispose of assets, make acquisitions, pay dividends or make
distributions, repurchase stock and enter into certain transactions with
affiliates, in each case subject to certain exceptions. The Credit Agreement
also has a financial covenant requiring the Borrowers to maintain
The Credit Agreement also contains customary events of default, including among other things, the Borrowers' failure to make any principal or interest payments when due, the occurrence of certain bankruptcy or insolvency events, or the Borrowers' breach of the covenants under the Credit Agreement. Upon the occurrence of an event of default, the Lenders may, among other things, accelerate the Borrowers' obligations under the Credit Agreement.
The above description of the Credit Agreement is a summary and is not complete. A copy of the Credit Agreement is filed as exhibit 10.1 to this Current Report on Form 8-K, and the above summary is qualified in its entirety by reference to the terms of the Credit Agreement.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The disclosure set forth in Item 1.01 above is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
10.1 Credit Agreement, dated as of
time party thereto, the guarantors from time to time party thereto, MidCap
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