Alvotech reports proposed $125M offering

Alvotech (NASDAQ: ALVO) has announced a proposed $125 million commercial bond offering, aimed at strengthening its capital position and supporting ongoing business operations. The offering, which includes both Icelandic krona (ISK) and U.S. dollar (USD) denominated bonds, is structured as a private placement with a maturity date of December 20, 2025. The ISK tranche carries a 15% annual payment-in-kind (PIK) coupon rate, while the USD tranche offers a 12.5% PIK coupon rate. Holders will have the option to convert the bonds into Alvotech ordinary shares at a fixed conversion rate of USD 10 per share on two specified dates: December 31, 2023, and June 30, 2024.

To ensure the success of the offering, ATP Holdings ehf., affiliated with Alvotech’s largest shareholder, Aztiq Pharma Partners S.a.r.l., has committed to acquiring any unsold bonds up to the $100 million par value. The private placement will be conducted as an overseas directed offering in Iceland, targeting professional clients and eligible counterparties.

This financing initiative follows a series of strategic moves by Alvotech to enhance its capital structure. In 2022, the company secured a Standby Equity Purchase Agreement (SEPA) facility from Yorkville and a binding term sheet for a debt facility from Sculptor Capital Management, collectively providing up to $250 million in financing. These arrangements were intended to replace potential redemptions by shareholders of Oaktree Acquisition Corp. II (OACB) during the proposed business combination, which was completed in 2022.

In 2025, Alvotech further expanded its capital base through a successful offering of Swedish Depository Receipts (SDRs) on Nasdaq Stockholm, raising approximately SEK 39 million and attracting over 3,000 new shareholders. The company has also pursued strategic acquisitions, including the R&D operations of Xbrane Biopharma AB, to bolster its biosimilar development capabilities.

Alvotech’s current pipeline includes nine biosimilar candidates targeting autoimmune disorders, eye disorders, osteoporosis, respiratory disease, and cancer. The company has established a global network of commercial partnerships to facilitate market access across multiple regions. As it continues to advance its product development and expand its commercial footprint, the proposed $125 million bond offering represents a key step in securing the necessary capital to support its long-term growth objectives.