Oaktree Acquisition II said it has secured a standby equity purchase agreement from YA II PN, Ltd and signed a binding term sheet for a debt facility from Sculptor Capital Management, totaling $250 million in support of the SPAC’s proposed merger with Alvotech Holdings S.A.
Alvotech is a global biopharmaceutical company focused on the development and manufacture of biosimilar medicines.
The two facilities are expected to be used to replace potential redemptions by OACB shareholders that may occur. The YA II facility provides for up to $150 million of equity financing. The binding term sheet with Sculptor provides for $75 million – $125 million in debt, with the exact amount to be finalized based on the level of net proceeds generated at closing of the merger.
Oaktree II has $250 million in its trust account. The SPAC also has an upsized PIPE of approximately $175 million.
The deal carries an implied enterprise value of $2.25 billion.
As announced last December, the combination is expected to deliver gross proceeds to Alvotech in excess of $450 million. Read more.
