Milbank LLP represented GoldenTree Asset Management as lender to Alvotech (NASDAQ: ALVO) in connection with the agreement by Alvotech’s lenders to reduce the rate of interest on Alvotech’s existing senior secured term loan facility (the “Facility”).
The Facility, which Milbank also advised on, was funded in July 2024 and matures in July 2029. It originally consisted of two tranches: a $900 million first-out term loan tranche (the “first tranche”), with an interest rate of SOFR plus 6.5% per annum, and a $65 million second-out term loan tranche (the “second tranche”), with an interest rate of SOFR plus 10.5% per annum. In conjunction with this transaction, certain of Alvotech’s lenders have agreed to increase the first tranche to include the second tranche, creating one single tranche going forward. The interest rate for the Facility will be SOFR plus 6.0% per annum and all interest will be payable in cash.
Reykjavik, Iceland-based Alvotech is a global biotech company specializing in the development and manufacture of biosimilar medicines for patients worldwide, with a network of strategic commercial partnerships spanning the United States, Europe, Japan, China and other Asian countries as well as large parts of South America, Africa and the Middle East.
The Milbank team was led by New York-based Global Leveraged Finance partners Marcus Dougherty and Spencer Pepper, along with special counsel Emily Rutcofsky and associates Ian Tomesch, Justin Hill and Christelle Lobo.
