aibioAlvotech secures $75 million term loan from GoldenTree funds
Tickers ALVO
Alvotech amended its credit agreement to add up to $75 million in term debt at 12.50% interest, maturing December 31, 2027. Its secured loan facility already had $1,031.6 million outstanding at the end of 2025.
Key facts
- Company
- Alvotech (NASDAQ: ALVO)
- News type
- Debt Financing
- Primary source
- Alvotech 6-K (2026-07-01)
Alvotech (Nasdaq: ALVO) amended its existing credit agreement to provide a term loan facility of up to $75 million, according to a press release dated July 1, 2026 and filed on Form 6-K. The lenders are funds managed by GoldenTree Asset Management LP and other existing lenders. The release names no placement agent, financial advisor or counsel for the loan or for the equity raise.
Terms of the new loan
The new money bears interest at 12.50%, payable monthly in cash, and matures on December 31, 2027. It expands the existing credit agreement alongside a $100 million term loan facility announced in December 2025. The release does not describe any collateral or covenants.
The 20-F filed March 31, 2026 describes that earlier $100 million Senior Term Loan Facility, entered into on 31 December 2025. It bears a 12.50% fixed cash interest rate, payable monthly, is repayable in a single bullet payment at maturity, and carries a make-whole premium and prepayment penalties. It had $96.7 million outstanding at year-end 2025.
Debt already on the books
The 20-F describes a secured loan facility signed in June 2024 with aggregate term-loan commitments of $965.0 million. It started in two tranches, at SOFR plus 6.5% and SOFR plus 10.5%, with a mix of cash and payment-in-kind interest. In June 2025 the company combined the tranches, removed the PIK feature and set one rate of SOFR plus 6.0%, payable entirely in cash. As of 31 December 2025, $1,031.6 million was outstanding under that facility. The 20-F says the facility was amended again in December 2025 to reflect the Senior Term Loan Facility and to adjust certain covenants and mandatory-prepayment provisions.
The company also issued $108 million of 2025 Convertible Bonds on 22 December 2025, at par, with 6.875% interest payable semi-annually. Holders may convert into SDRs at an initial conversion price of $5.9224. That price can reset once if the company completes qualifying equity raises of at least $50 million within 24 months of issuance. The 20-F does not say whether the June 2026 raise qualifies. Investors may also put the bonds on a change of control, a loss of free float or a delisting. At year-end 2025, $68.4 million was outstanding on the convertible bonds, and the conversion option had a fair value of $38.7 million.
The earlier 2022 Convertible Bonds show the dilution history. Holders of most of them converted in June 2024 at a fixed conversion price of $10.00 per share, and on 1 July 2024 the company issued 22,073,578 new ordinary shares. Holders who did not convert were redeemed in cash for $117.7 million, paid on 11 July 2024.
The equity raise
The release says the loan follows a $165 million equity capital raise announced on June 18, 2026. Including that equity and the undrawn term loan, Alvotech says it has secured access to $240 million in new capital. The release says the equity raise strengthened the company's cash position. Founder and chairman Robert Wessman said, "This financing provides additional flexibility as we continue to execute on our strategic priorities." He credited more than 40 new specialist healthcare investors in the equity offering.
The release gives no cash balance and no share count or price for the June raise, so the size of the dilution cannot be measured from it.
Pipeline and claims
The release says Alvotech has approximately 30 biosimilar products in development, has resubmitted key Biologics License Applications to the FDA, and has FDA acceptance of a BLA for a biosimilar to Entyvio. The release gives no decision date for any of those applications. Its company description says five biosimilars are approved and marketed and lists nine disclosed candidates, a smaller number than the approximately 30 products the release cites.
What comes next
The new loan matures on December 31, 2027. The company says the money will support its biosimilar pipeline, product launches and expansion of its global commercial operations. The release does not say when the FDA will act on the resubmitted applications.