Alvotech Agrees to Strategic Refinancing Deal
Biotechnology company Alvotech announced a strategic refinancing transaction valued up to $965 million, led by GoldenTree Asset Management. The financing aims to improve cost of capital and enhance financial flexibility.
Biotechnology firm Alvotech has secured a strategic refinancing agreement valued at up to $965 million, led by GoldenTree Asset Management and other institutional investors. The transaction is intended to lower the company's cost of capital, address upcoming debt maturities in 2025, and increase its financial flexibility.
The financing facility includes a first lien term loan of up to $965 million, split into two tranches. The primary tranche totals $900 million with an interest rate of SOFR plus 6.5%, while an optional second tranche of $65 million carries an interest rate of SOFR plus 10.5%. The facility matures in June 2029 and is expected to close in July 2024.
Alvotech plans to utilize the proceeds to refinance existing debt obligations and support working capital needs for its upcoming biosimilar product launches. The company anticipates this move will enable the execution of its growth plans and support long-term financial stability.
This refinancing comes as Alvotech prepares for significant revenue growth and pipeline advancements. The company specializes in the development and manufacturing of biosimilar medicines for global markets.