Alvotech’s Lenders Lower Interest on Senior Secured Term Loan Facility
Alvotech (NASDAQ: ALVO) announced that its lenders have agreed to reduce interest rates on its senior secured term loan facility, resulting in estimated savings of $8.2 million in interest payments over the first 12 months. The agreement reflects the company's improved operational performance and stronger financial position.
The facility, maturing in July 2029, will consolidate its two tranches into a single tranche with an interest rate of SOFR plus 6.0% per annum, down from previous rates of SOFR plus 6.5% and 10.5%. The total facility balance stands at $1,081 million, with a company cash balance of $152 million as of June 25, 2025.
Alvotech (NASDAQ: ALVO) ha annunciato che i suoi finanziatori hanno accettato di ridurre i tassi di interesse sul suo prestito senior garantito a termine, con un risparmio stimato di 8,2 milioni di dollari nei pagamenti degli interessi nei primi 12 mesi. L'accordo riflette il miglioramento delle performance operative e la posizione finanziaria più solida dell'azienda.
La struttura, con scadenza a luglio 2029, consoliderà le due tranche in un'unica tranche con un tasso di interesse pari a SOFR più 6,0% annuo, in calo rispetto ai precedenti tassi di SOFR più 6,5% e 10,5%. Il saldo totale della struttura ammonta a 1.081 milioni di dollari, con una liquidità aziendale di 152 milioni di dollari al 25 giugno 2025.
Alvotech (NASDAQ: ALVO) anunció que sus prestamistas han acordado reducir las tasas de interés de su línea de préstamo garantizado senior a plazo, resultando en un ahorro estimado de 8,2 millones de dólares en pagos de intereses durante los primeros 12 meses. El acuerdo refleja la mejora en el desempeño operativo y la posición financiera más sólida de la compañía.
La línea de crédito, que vence en julio de 2029, consolidará sus dos tramos en uno solo con una tasa de interés de SOFR más 6,0% anual, reducida respecto a las tasas anteriores de SOFR más 6,5% y 10,5%. El saldo total de la línea es de 1.081 millones de dólares, con un saldo de efectivo de la empresa de 152 millones de dólares al 25 de junio de 2025.
Alvotech (NASDAQ: ALVO)는 대출 기관들이 선순위 담보 기한부 대출 시설의 이자율을 인하하기로 합의했다고 발표했으며, 이에 따라 첫 12개월 동안 약 820만 달러의 이자 비용 절감이 예상됩니다. 이번 합의는 회사의 개선된 운영 성과와 강화된 재무 상태를 반영합니다.
만기는 2029년 7월이며, 두 개의 대출 구간을 단일 구간으로 통합하여 연이자율을 SOFR 플러스 6.0%로 낮춥니다. 이전의 SOFR 플러스 6.5% 및 10.5%에서 인하된 것입니다. 총 대출 잔액은 10억 8,100만 달러이며, 2025년 6월 25일 기준 회사 현금 잔액은 1억 5,200만 달러입니다.
Alvotech (NASDAQ : ALVO) a annoncé que ses prêteurs ont accepté de réduire les taux d'intérêt de sa facilité de prêt à terme senior garanti, ce qui entraînera une économie estimée à 8,2 millions de dollars sur les paiements d'intérêts au cours des 12 premiers mois. Cet accord reflète l'amélioration des performances opérationnelles et la position financière renforcée de l'entreprise.
La facilité, arrivant à échéance en juillet 2029, regroupera ses deux tranches en une seule avec un taux d'intérêt de SOFR plus 6,0% par an, en baisse par rapport aux taux précédents de SOFR plus 6,5% et 10,5%. Le solde total de la facilité s'élève à 1 081 millions de dollars, avec une trésorerie de l'entreprise de 152 millions de dollars au 25 juin 2025.
Alvotech (NASDAQ: ALVO) gab bekannt, dass seine Kreditgeber zugestimmt haben, die Zinssätze für seine vorrangige besicherte Terminkreditfazilität zu senken, was zu geschätzten Einsparungen von 8,2 Millionen US-Dollar an Zinszahlungen in den ersten 12 Monaten führt. Die Vereinbarung spiegelt die verbesserte operative Leistung und die stärkere finanzielle Lage des Unternehmens wider.
Die Fazilität, die im Juli 2029 fällig wird, wird ihre zwei Tranchen zu einer einzigen Tranche mit einem Zinssatz von SOFR plus 6,0% pro Jahr zusammenführen, was unter den vorherigen Zinssätzen von SOFR plus 6,5% und 10,5% liegt. Der Gesamtfazilitätsbetrag beläuft sich auf 1.081 Millionen US-Dollar, bei einem Barbestand des Unternehmens von 152 Millionen US-Dollar zum 25. Juni 2025.
- None.
- Substantial debt load of $1,081 million remains on balance sheet
Insights
Alvotech's reduced loan interest rates will save $8.2M annually, indicating lender confidence in their improving financial performance.
This interest rate reduction represents a meaningful financial development for Alvotech. The company is securing a 50 basis point reduction on their first tranche loan (from SOFR+6.5% to SOFR+6.0%) while also benefiting from a substantial 450 basis point reduction on their second tranche by consolidating it into the first tranche (from SOFR+10.5% to SOFR+6.0%).
The
The consolidation of the two tranches into a single
This development aligns with management's statement about "significant revenue growth, operating profits and positive adjusted EBITDA." The company's claim that it expects to fund future growth through milestone and product revenue rather than additional financing suggests improving cash flow dynamics, which the lenders appear to be validating through this rate reduction.
REYKJAVIK, Iceland, June 26, 2025 (GLOBE NEWSWIRE) -- Alvotech (NASDAQ: ALVO, the “Company”), a global biotech company specializing in the development and manufacture of biosimilar medicines for patients worldwide, today announced that its lenders under the Company’s existing senior secured term loan facility, including GoldenTree Asset Management (collectively, the “Lenders”), have agreed to reduce the rate of interest on its existing senior secured term loan facility (the “Facility”). The agreement will lower Alvotech’s interest payments in the first 12 months by an estimated US
“Since last year, we have shown significant revenue growth, operating profits and positive adjusted EBITDA, and we expect to be able to fund future growth based on milestone and product revenue. Being able to reduce our cost of capital demonstrates great confidence, by a group of experienced healthcare investors, in Alvotech’s leadership, our pipeline progress and prospects for near-term product launches.” said Joel Morales, Chief Financial Officer of Alvotech.
The Facility was funded in July 2024 and matures in July 2029. It originally consisted of two tranches: a
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), 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.
About GoldenTree
GoldenTree is an employee-owned, global asset management firm that specializes in opportunities across the credit universe in sectors such as high yield bonds, leveraged loans, private credit, distressed debt, structured products, emerging markets, real estate, private equity and credit-themed equities. GoldenTree was founded in 2000 by Steven A. Tananbaum and is one of the largest independent global credit asset managers. GoldenTree manages
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, estimated cost savings resulting of the agreement, 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, financial and operations performance, goals or achievements or other future events, 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
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