REYKJAVIK, Iceland, June 07, 2024 (GLOBE NEWSWIRE) -- Alvotech (NASDAQ:ALVO), a global biotech company specializing in the development and manufacture of biosimilar medicines for patients worldwide, today announced the successful arrangement of a strategic refinancing transaction. The financing, led by GoldenTree Asset Management, with participation from other institutional investors (collectively, the "Lenders"), will enable Alvotech (the "Company") 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 obtains financing from experienced healthcare investors who share the Company's confidence in its expected near-term product launches and pipeline progress. Alvotech has entered into an agreement with the Lenders for a senior secured first lien term loan facility (the "Facility") of up to $965 million, in two tranches. The first tranche, a first lien $900 million term loan bears an interest rate of SOFR plus 6.5% per annum. The Lenders have also committed to an optional second tranche, a $65 million first lien, second out term loan drawable at Alvotech's discretion, which bears an interest rate of SOFR plus 10.5% per annum. The Facility matures in June 2029 and is expected to fund in July 2024. The Company intends to use the proceeds from the Facility to refinance various outstanding debt obligations, including those maturing in 2025. The remaining proceeds from this transaction will be allocated towards supporting Alvotech's working capital requirements for ongoing and expected launches in the near term. "This facility aligns with our commitment to enhance financial flexibility and sustain Alvotech's long-term growth. We expect significant revenue growth and diversification as we launch our biosimilars in multiple markets around the world and advance our pipeline of biosimilar candidates. Refinancing near-term maturing debt will help us execute our growth plans over the near and mid-term," said Joel Morales, Chief Finance Officer of Alvotech. Alvotech is a vertically integrated biotech company focused exclusively on the development and manufacture of biosimilar medicines for markets worldwide. Alvotech has built a comprehensive platform that includes all phases of product development and commercial manufacturing and has formed a network of strategic commercial partnerships to provide global reach in over 90 countries worldwide. About AlvotechAlvotech 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 ...