Global biotech company Alvotech ( NASDAQ: ALVO ) announced a strategic refinancing transaction , the financing will enable Alvotech ( ALVO ) to improve cost of capital, address upcoming debt maturities in 2025 and enhance its financial flexibility by adding incremental cash to the balance sheet. With the transaction, Alvotech ( ALVO ) obtains financing from experienced healthcare investors who share the company’s confidence in its expected near-term product launches and pipeline progress. Alvotech ( ALVO ) has entered into an agreement with the Lenders for a senior secured first lien term loan facility of up to $965M, in two tranches.
The first tranche, a first lien $900M term loan bears an interest rate of SOFR plus 6.5% per annum and a $65M first lien, second out term loan drawable at discretion. The company intends to use the proceeds to refinance various outstanding debt obligations, including those maturing in 2025.
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