Alvogen Pharma US has secured a private credit loan led by Centerbridge Partners to alleviate near-term refinancing risks, as the generic drugmaker faces anticipated revenue declines, according to a report by Bloomberg.
Blue Torch Capital also participated in the deal, which will refinance Alvogen’s syndicated loan originally due this year, according to sources familiar with the matter. While the exact size of the new financing remains undisclosed, the new loan will extend Alvogen’s debt maturities by three to four years, one of the sources indicated.
Alvogen had been under pressure to address a $727m loan due in 2024, according to S&P Global Ratings, which downgraded the company in January due to refinancing uncertainties and revenue risks linked to key products. Moody’s also downgraded Alvogen two notches to Caa2, reflecting concerns over its financial position.
Alvogen is backed by CVC Capital Partners and Temasek Holdings, which acquired a controlling stake in 2015 in a deal that valued the company at $2bn. Founder Róbert Wessman retained a minority ownership stake.
Representatives for CVC, Temasek, and Centerbridge declined to comment, while Alvogen and Blue Torch did not immediately respond to inquiries.
