Alvotech Announces Closing of Private Debt Financing

Core Viewpoint - Alvotech has successfully closed a senior secured first lien term loan facility, allowing the company to refinance existing debt, reduce capital costs, and enhance its debt maturity profile [1][2][3]. Financial Summary - Following the closing of the facility, Alvotech's total gross borrowings stand at $1,035 million, with a cash balance of $185 million, which includes $18 million in cash on hand, $25 million in restricted cash, and estimated net proceeds of $142 million [2]. - The facility financing amounts to $965 million, maturing in June 2029, with the first tranche being a $900 million term loan at an interest rate of SOFR plus 6.5% per annum, and the second tranche being a $65 million term loan at SOFR plus 10.5% per annum [2]. Strategic Initiatives - The refinancing transaction provides Alvotech with additional flexibility to pursue its long-term growth strategy, as stated by the Chief Finance Officer [3]. - Alvotech aims to advance its existing development pipeline and support working capital for upcoming biosimilars launches [2]. Company Overview - Alvotech is a biotech company focused on developing and manufacturing biosimilar medicines globally, with a goal to become a leader in the biosimilar market [4]. - The company has launched two biosimilars and has a development pipeline that includes nine disclosed biosimilar candidates targeting various diseases [4]. - Alvotech has established strategic commercial partnerships across multiple regions, including the United States, Europe, Japan, and parts of Asia and South America [4].