Alvogen seeks $55 million add-on term loan led by Jefferies

By Sara Rosenberg

New York, March 29 – Alvogen is going out to lenders with a $55 million add-on term loan, according to a market source.

Jefferies Finance LLC is the lead on the deal.

No formal call will be held to launch the add-on. The company’s earnings call is scheduled to take place on Wednesday.

Pricing on the add-on is Libor plus 500 basis points with a 1% Libor floor, in line with existing term loan pricing, the source said.

Original issue discount talk on the add-on loan is still to be determined.

All of the term loan debt will get 101 soft call protection for six months, the source added.

Proceeds will be used for general corporate purposes and to potentially fund a portion of the acquisition of County Line Pharmaceuticals, a Wisconsin-based specialty generic pharmaceutical company.

The acquisition is expected to provide annual revenues of over $100 million per year.

Last week, Moody’s Investors Service upgraded Alvogen’s corporate family rating to B2 from B3, and affirmed the senior secured term loan at B3.

Moody’s said that the upgrade reflects material improvement in the company’s size, product diversification and product pipeline over the past several years, and, recently announced acquisitions, including County Line and Fera also improve the company’s growth outlook

Alvogen is a generic pharmaceutical company.

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