Alvotech secures $50 million loan, ups existing bonds by $70 million

By Mary-Katherine Stinson

Lexington, Ky., Nov. 16 – Alvotech secured financing facilities totaling $136 million at current exchange rates consisting of an additional $50 million subordinated loan and a $70 million increase in its existing senior bonds, according to a press release.

Alvotech has secured from Alvogen, a major shareholder, the additional $50 million facility, which also provides the right to procure warrants representing up to 4% of Alvotech’s ordinary share capital unless Alvotech does not utilize the proceeds of the facility and replaces it with new financing under certain commercial terms by Dec. 15.

Alvotech upsized its existing first-lien facility by $70 million with additional investment from Farallon Capital Management, Sculptor Capital Management, Oaktree Capital Management, Lodbrok Capital and Morgan Stanley.

Included in the agreement, bondholders have the right to procure warrants representing up to 2.5% of Alvotech’s ordinary share capital unless Alvotech raises additional capital in accordance with the terms of the first-lien facility.

Alvotech also acquired its previously leased Reykjavik manufacturing facility from a subsidiary of Aztiq, a major shareholder, in exchange for a subordinated convertible bond in the principal amount of $80 million. In connection with the acquisition, the company entered a secured loan agreement with Landsbankinn hf. to provide approximately $16 million in proceeds at current exchange rates through refinancing of the secured facility.

Alvotech is a global biotech company based in Reykjavik, Iceland that develops and manufactures biosimilar medicines.

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