Alvogen shops $55 million incremental term loan at discount of 98.5

By Sara Rosenberg

New York, March 30 – Alvogen came out with original issue discount talk of 98.5 on its $55 million incremental first-lien term loan, according to a market source.

Pricing on the incremental loan is Libor plus 500 basis points with a 1% Libor floor, in line with existing term loan pricing.

As previously reported, all of the first-lien term loan debt will get 101 soft call protection for six months.

Jefferies Finance LLC is the lead on the deal.

Commitments are due at 10 a.m. ET on Tuesday, the source said.

Proceeds will be used for general corporate purposes and to potentially fund a portion of the acquisition of County Line Pharmaceuticals, a Wisconsin-based specialty generic pharmaceutical company.

The acquisition is expected to provide annual revenues of more than $100 million per year.

Last week, Moody’s Investors Service upgraded Alvogen’s corporate family rating to B2 from B3 and affirmed the senior secured term loan at B3.

Moody’s said that the upgrade reflects material improvement in the company’s size, product diversification and product pipeline over the past several years, and, recently announced acquisitions, including County Line and Fera also improve the company’s growth outlook.

Alvogen is a generic pharmaceutical company.

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