Alvogen Strengthens Financial Position with Strategic Refinancing

Alvogen Completes Strategic Refinancing to Enhance Stability

Alvogen Pharma US, Inc. is a privately owned pharmaceutical company making significant strides in its financial health. Recently, Alvogen successfully completed a comprehensive refinancing of its capital structure, marking a pivotal moment for the company. This move involves raising a substantial $553 million first lien term loan with a maturity set for 2028, and an additional $116 million second lien term loan due in 2029. This strategic refinancing step aims to replace the existing secured term loan that was due in 2025.

Debt Reduction and Improved Liquidity

Notably, the new term loans will significantly reduce Alvogen's debt burden by approximately $60 million. This restructuring showcases the company's prudent financial management, as these loans are projected to represent around 1.4 times Alvogen's anticipated 2024 EBITDA, a positive indicator of financial analytics and future growth potential.

Amendment of Credit Facilities

Alongside the new term loans, Alvogen has successfully amended and extended its existing $240 million ABL revolving credit facility, which ensures the company has access to essential liquidity. This accessibility to funds further solidifies Alvogen's financial foundation, enabling the company to meet operational demands and explore new growth opportunities.

Positive Outlook on Credit Rating

In light of these developments, Alvogen is optimistic regarding its credit rating. Analysts, including S&P, are expected to revisit and potentially elevate the company's rating, reflecting its improved liquidity and financial profile. While a temporary rating will be assigned according to S&P's policies, the company's efforts in restructuring its debt are expected to lead to a more favorable long-term outlook.

Leadership Insights on the Refinancing

Lisa Graver, the Chief Executive Officer of Alvogen, expressed her satisfaction regarding the refinancing initiative, stating, "We are pleased to have completed this important refinancing for Alvogen, which strengthens our capital structure in terms of maturity and continued access to substantial liquidity. This positions us well to execute our long-term business strategy effectively."

About Alvogen's Vision and Growth

Alvogen focuses on the development, in-licensing, manufacturing, and marketing of innovative pharmaceutical products. The company is dedicated to expanding its portfolio with a range of complex, high-value products including difficult-to-formulate inhalation therapies, injectables, and strategic 505(b)(2) filing products. Currently, Alvogen boasts over 50 products on the market, underpinned by robust R&D capabilities that stimulate its growing product pipeline.

Collaborative Efforts in Refinancing

The refinancing process involved key partnerships with leading financial institutions. Goldman Sachs & Co. LLC and Jefferies LLC acted as joint financial advisors, guiding Alvogen through this comprehensive refinancing process. Legal counsel was provided by White & Case LLP, ensuring that all aspects of the transaction were meticulously handled.

Enhancing the Global Healthcare Landscape

Alvogen's operations are part of a broader movement within the pharmaceutical sector aimed at improving healthcare accessibility and effectiveness. Key shareholders, including Aztiq—an Icelandic healthcare investment firm—CVC Capital Partners, and Temasek Holdings of Singapore, are dedicated to fostering innovation within Alvogen to address global healthcare challenges. Their backing reinforces Alvogen's capability to deliver impactful healthcare solutions.

Frequently Asked Questions

What recent refinancing has Alvogen completed?

Alvogen recently refinanced its capital structure with a $553 million first lien term loan and a $116 million second lien term loan.

How much debt will Alvogen reduce with this refinancing?

The refinancing initiative is set to reduce Alvogen's debt by approximately $60 million.

What impact might this refinancing have on Alvogen's credit rating?

Alvogen expects an improvement in its credit rating from S&P due to better liquidity and reduced debt levels.

Who advised Alvogen during the refinancing process?

Goldman Sachs & Co. LLC and Jefferies LLC were the joint financial advisors, with legal support from White & Case LLP.

What markets does Alvogen focus on?

Alvogen specializes in developing a variety of pharmaceutical products, including complex inhalations and strategic marketed items.

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