06:37 AM EDT, 06/07/2024 (MT Newswires) -- Alvotech ( ALVO ) said on Friday it has entered into an agreement with the lenders for a senior secured first-lien term loan facility of up to $965 million in two tranches.

The company said the first tranche is a $900 million term loan with an interest rate of SOFR plus 6.5% per annum, while the optional second tranche is a $65 million loan at SOFR + 10.5%, drawable at Alvotech's ( ALVO ) discretion.

The proceeds from the facility, which matures in June 2029 and is expected to be funded in July 2024, will be allocated to support Alvotech's ( ALVO ) working capital requirements for ongoing and expected launches in the near term, the company said.