S&P puts Alvogen on watch

S&P said it placed all its ratings for Alvogen Pharma US Inc. on CreditWatch with negative implications.

Alvogen is highly leveraged, and its future financial performance entails significant risks. The company also has limited liquidity and its debt, including both its asset-based lending facility with about $203 million outstanding is due Jan. 29, 2025, and its term loan with about $769 million outstanding, is due June 30, 2025, the agency noted.

Additionally, Alvogen is on the hook for 20% payment-in-kind dividends annually on its about $300 million of preferred equity.

In a press release, S&P said it aims to resolve the negative watch “by mid-2024 depending on the resolution of the patent litigation around rifaximin, the company's ability to consistently generate positive free cash flow, as well as its progress toward a refinancing.”

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