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Alvotech (NASDAQ: ALVO), a global biotech company focused on biosimilar medicines, has closed a senior secured first lien term loan facility. This refinancing move has allowed Alvotech to reduce its cost of capital and improve its debt maturity profile. The company now has total gross borrowings of $1,035 million and a cash balance of $185 million. The new facility includes a $900 million term loan at SOFR plus 6.5% and a $65 million term loan at SOFR plus 10.5%, both maturing in June 2029. Alvotech plans to use the available cash to advance its development pipeline and support working capital requirements for ongoing and upcoming biosimilar launches.
Alvotech (NASDAQ: ALVO), un'azienda biotech globale focalizzata su medicinali biosimilari, ha chiuso una linea di credito senior garantita di primo grado. Questa operazione di rifinanziamento ha consentito ad Alvotech di ridurre i costi del capitale e migliorare il profilo di scadenza del debito. L'azienda ha ora prestiti totali lordi di 1.035 milioni di dollari e un saldo di cassa di 185 milioni di dollari. La nuova linea include un prestito a termine di 900 milioni di dollari a SOFR più 6,5% e un prestito a termine di 65 milioni di dollari a SOFR più 10,5%, entrambi con scadenza a giugno 2029. Alvotech prevede di utilizzare la liquidità disponibile per avanzare il proprio pipeline di sviluppo e supportare le esigenze di capitale circolante per i lanci di biosimilari in corso e futuri.
Alvotech (NASDAQ: ALVO), una compañía biotecnológica global centrada en medicamentos biosimilares, ha cerrado una línea de crédito senior garantizada de primer grado. Este movimiento de refinanciamiento ha permitido a Alvotech reducir su costo de capital y mejorar su perfil de vencimiento de la deuda. La compañía ahora tiene préstamos totales brutos de 1,035 millones de dólares y un saldo de efectivo de 185 millones de dólares. La nueva línea incluye un préstamo a plazo de 900 millones de dólares a SOFR más 6.5% y un préstamo a plazo de 65 millones de dólares a SOFR más 10.5%, ambos con vencimiento en junio de 2029. Alvotech planea utilizar el efectivo disponible para avanzar en su cartera de desarrollo y apoyar los requerimientos de capital de trabajo para los lanzamientos de biosimilares en curso y futuros.
알보텍(나스닥: ALVO)은 바이오시밀러 의약품에 집중하는 글로벌 생명공학 회사로, 선순위 담보 첫 번째 대출 시설을 마감했습니다. 이번 재융자는 알보텍이 자본 비용을 줄이고 부채 만기 프로필을 개선하는 데 도움을 주었습니다. 현재 회사는 총 10억 3500만 달러의 대출을 보유하고 있으며, 현금 잔액은 1억 8500만 달러입니다. 새로운 대출 시설은 SOFR 플러스 6.5%의 9억 달러 대출과 SOFR 플러스 10.5%의 6500만 달러 대출을 포함하며, 두 대출 모두 2029년 6월 만기가 됩니다. 알보텍은 사용 가능한 현금을 개발 파이프라인을 진전시키고 진행 중 및 향후 바이오시밀러 출시를 위한 운영 자본 요구를 지원하는 데 사용할 계획입니다.
Alvotech (NASDAQ: ALVO), une entreprise biopharmaceutique mondiale axée sur les médicaments biosimilaires, a fermé une ligne de prêt senior sécurisée en première position. Ce mouvement de refinancement a permis à Alvotech de réduire son coût du capital et d'améliorer son profil d'échéance de la dette. L'entreprise dispose désormais de 1 035 millions de dollars d'emprunts bruts et d'un solde de trésorerie de 185 millions de dollars. La nouvelle ligne inclut un prêt à terme de 900 millions de dollars à SOFR plus 6,5% et un prêt à terme de 65 millions de dollars à SOFR plus 10,5%, tous deux arrivant à échéance en juin 2029. Alvotech prévoit d'utiliser les liquidités disponibles pour faire avancer son pipeline de développement et soutenir les besoins en fonds de roulement pour les lancements de biosimilaires en cours et à venir.
Alvotech (NASDAQ: ALVO), ein globales Biotech-Unternehmen, das sich auf biosimilar Produkte konzentriert, hat eine senior gesicherte erste Hypothekendarlehensfazilität abgeschlossen. Dieser Refinanzierungsschritt hat Alvotech ermöglicht, die Kapitalkosten zu senken und das Fälligkeitsprofil der Schulden zu verbessern. Das Unternehmen hat nun insgesamt 1.035 Millionen Dollar an bruttokrediten und einen Barbestand von 185 Millionen Dollar. Die neue Fazilität umfasst ein Terminkredit in Höhe von 900 Millionen Dollar zu SOFR plus 6,5% sowie ein Terminkredit über 65 Millionen Dollar zu SOFR plus 10,5%, beide mit Fälligkeit im Juni 2029. Alvotech plant, die verfügbaren Mittel zu nutzen, um die Entwicklungspipeline voranzutreiben und die Anforderungen an das Betriebskapital für laufende und bevorstehende Biosimilar-Einführungen zu unterstützen.
- Successful refinancing of debt obligations
- Reduced cost of capital
- Improved debt maturity profile
- Cash balance of $185 million after refinancing
- Additional financial flexibility for growth strategy
- Increased total gross borrowings to $1,035 million
- Higher interest rates on new loans (SOFR plus 6.5% and 10.5%)
Insights
Alvotech's successful refinancing marks a significant milestone, improving its financial position and operational flexibility. The new
- Reduced cost of capital and improved debt maturity profile
- Total gross borrowings of
$1,035 million - Cash balance of
$185 million , including$142 million in estimated net proceeds
The two-tranche structure offers flexibility, with the larger
Alvotech's refinancing strategy aligns with its ambitious growth plans in the burgeoning biosimilars market. The
- Advance the existing development pipeline
- Support working capital for ongoing and near-term biosimilar launches
This financial maneuver is timely, considering the increasing demand for cost-effective biosimilars. Alvotech's focus on global markets positions it well to capitalize on patent expirations of major biologics. The company's ability to secure this financing amid market volatility underscores investor confidence in its pipeline and commercial strategy. However, the biotech sector's inherent risks, including regulatory hurdles and competition, remain factors to watch closely.
Alvotech (NASDAQ: ALVO), a global biotech company specializing in the development and manufacture of biosimilar medicines for patients worldwide, today announced the closing of its previously announced senior secured first lien term loan facility (the “Facility”). The closing has allowed Alvotech to refinance outstanding debt obligations, reduce the cost of capital and improve its overall debt maturity profile.
Following the closing of the Facility, which included the settlement of existing debt obligations, Alvotech has a total gross borrowings balance of
The Facility financing, for
“We are thrilled to have successfully closed this refinancing transaction, which grants us additional flexibility to advance our long-term growth strategy,” said Joel Morales, Chief Finance Officer of Alvotech. “The recently completed conversion of subordinated convertible bonds into equity also demonstrated strong confidence by our bondholders in Alvotech’s performance and both near term and longer-term opportunities as a leading biosimilars company.”
About Alvotech
Alvotech is a biotech company, founded by Robert Wessman, focused solely on the development and manufacture of biosimilar medicines for patients worldwide. Alvotech seeks to be a global leader in the biosimilar space by delivering high quality, cost-effective products, and services, enabled by a fully integrated approach and broad in-house capabilities. Alvotech has launched two biosimilars. The current development pipeline includes nine disclosed biosimilar candidates aimed at treating autoimmune disorders, eye disorders, osteoporosis, respiratory disease, and cancer. Alvotech has formed a network of strategic commercial partnerships to provide global reach and leverage local expertise in markets that include the United States, Europe, Japan, China, and other Asian countries and large parts of South America, Africa and the Middle East. Alvotech’s commercial partners include Teva Pharmaceuticals, a US affiliate of Teva Pharmaceutical Industries Ltd. (US), STADA Arzneimittel AG (EU), Fuji Pharma Co., Ltd (Japan), Advanz Pharma (EEA, UK, Switzerland, Canada, Australia and New Zealand), Dr. Reddy’s (EEA, UK and US), Cipla/Cipla Gulf/Cipla Med Pro (Australia, New Zealand, South Africa/Africa), JAMP Pharma Corporation (Canada), Yangtze River Pharmaceutical (Group) Co., Ltd. (China), DKSH (Taiwan, Hong Kong, Cambodia, Malaysia, Singapore, Indonesia, India, Bangladesh and Pakistan), YAS Holding LLC (Middle East and North Africa), Abdi Ibrahim (Turkey), Kamada Ltd. (Israel), Mega Labs, Stein, Libbs, Tuteur and Saval (Latin America) and Lotus Pharmaceuticals Co., Ltd. (Thailand, Vietnam, Philippines, and South Korea). Each commercial partnership covers a unique set of product(s) and territories. Except as specifically set forth therein, Alvotech disclaims responsibility for the content of periodic filings, disclosures and other reports made available by its partners. For more information, please visit www.alvotech.com. None of the information on the Alvotech website shall be deemed part of this press release.
Forward Looking Statements
Certain statements in this communication may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements generally relate to future events or the future financial operating performance of Alvotech and may include, for example, Alvotech’s expectations regarding its ability to comply with the covenants of the Facility and to exercise its rights under the Facility, the expected use of proceeds from the Facility, potential future financings or strategic transactions, Alvotech’s competitive advantages, business prospects and opportunities including product launches, pipeline product development, revenue and diversification, future plans and intentions, results, level of activities, performance, goals or achievements or other future events, regulatory submissions, review and interactions, the potential approval and commercial launch of its product candidates, the timing of regulatory approval, and market launches. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “aim” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Alvotech and its management, are inherently uncertain and are inherently subject to risks, variability, and contingencies, many of which are beyond Alvotech’s control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) the ability to raise substantial additional funding, which may not be available on acceptable terms or at all; (2) the ability to maintain stock exchange listing standards; (3) changes in applicable laws or regulations; (4) the possibility that Alvotech may be adversely affected by other economic, business, and/or competitive factors; (5) Alvotech’s estimates of revenue, expenses and profitability; (6) Alvotech’s ability to develop, manufacture and commercialize the products and product candidates in its pipeline; (7) the ability of Alvotech or its partners to enroll and retain patients in clinical studies; (8) the ability of Alvotech or its partners to gain approval from regulators for planned clinical studies, study plans or sites; (9) the ability of Alvotech’s partners to conduct, supervise and monitor existing and potential future clinical studies, which may impact development timelines and plans; (10) Alvotech’s ability to obtain and maintain regulatory approval or authorizations of its products, including the timing or likelihood of expansion into additional markets or geographies; (11) the success of Alvotech’s current and future collaborations, joint ventures, partnerships or licensing arrangements; (12) Alvotech’s ability, and that of its commercial partners, to execute their commercialization strategy for approved products; (13) Alvotech’s ability to manufacture sufficient commercial supply of its approved products; (14) the outcome of ongoing and future litigation regarding Alvotech’s products and product candidates; (15) the impact of worsening macroeconomic conditions, including rising inflation and interest rates and general market conditions, conflicts in Ukraine, the Middle East and other global geopolitical tension, on the Company’s business, financial position, strategy and anticipated milestones; (16) Alvotech’s ability to comply with the covenants of the Facility and (17) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in documents that Alvotech may from time to time file or furnish with the SEC. There may be additional risks that Alvotech does not presently know or that Alvotech currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Alvotech does not undertake any duty to update these forward-looking statements or to inform the recipient of any matters of which any of them becomes aware of which may affect any matter referred to in this communication. Alvotech disclaims any and all liability for any loss or damage (whether foreseeable or not) suffered or incurred by any person or entity as a result of anything contained or omitted from this communication and such liability is expressly disclaimed. The recipient agrees that it shall not seek to sue or otherwise hold Alvotech or any of its directors, officers, employees, affiliates, agents, advisors, or representatives liable in any respect for the provision of this communication, the information contained in this communication, or the omission of any information from this communication.
ALVOTECH INVESTOR RELATIONS AND GLOBAL COMMUNICATIONS
Benedikt Stefansson, VP
alvotech.ir@alvotech.com
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FAQ
What is the new debt structure for Alvotech (ALVO) after the refinancing?
How much cash does Alvotech (ALVO) have after the refinancing?
What are Alvotech's (ALVO) plans for the available cash from the refinancing?
When does Alvotech's (ALVO) new loan facility mature?
