Alvotech announced a private placement of subordinated convertible bonds approximately $70 million on December 16, 2022. The investment is done in two tranches, Tranche A and Tranche B, where bonds are convertible into new fully paid ordinary shares of the company. The principal amount of approximately $70 million having a maturity of 36 months.

Tranche A is ISK denominated and carries an annual payment-in-kind (PIK) coupon rate of 15% per year, while tranche B is USD denominated and carries an annual PIK coupon rate of 12.5% per year. Holders of the Bonds, both Tranche A and Tranche B, may elect, at their sole discretion, to convert all or part of the principal amount and accrued coupon into ordinary shares of the company at a fixed conversion rate of $10 per share on December 31, 2023, or June 30, 2024.