Today’s press release did not disclose redemption amounts, but OACB closed today at $9.86.
The SPAC recently added up to $250 million to its combination with Alvotech in April through two facilities to replace potential redemptions. The backstops are made up of an $150 million standby equity purchase agreement (SEPA) from YA II PN, an affiliate of Oaktree II’s sponsor, and a binding term sheet providing $75 million to $125 million in debt from Sculptor Capital Management. Each of these may be pulled upon at Alvotech’s discretion with the exact amount to be determined by redemptions at close, but together they effectively backstop Oaktree II’s entire $250 million trust.
Furthermore, Oaktree II announced in January that it had secured an additional $21 million in funding for a total PIPE size of approximately $175 million to finance its combination with biopharma company Alvotech. At $10.00 per share, this additional funding was driven by increased interest from Icelandic investors, including Arctica Finance, Arion Bank, and Landsbankinn as well as other top-tier investors including Suvretta Capital, Athos (the Strüngmann Family Office), CVC Capital Partners, Temasek Holdings, Farallon Capital Management, and Sculptor Capital Management, among others.
The parties originally expected to generate gross proceeds to Alvotech in excess of $475 million, including cash proceeds of approximately $250 million from Oaktree II’s trust account; in excess of $175 million from the upsized PIPE investors; and a $50 million equity commitment from existing shareholders which funded before year-end 2021.
Nonetheless, Oaktree II expects to close the deals on Wednesday, June 15, 2022, subject to the satisfaction of all other applicable closing conditions. The ordinary shares of Alvotech are expected to trade under the new ticker symbol “ALVO” on The Nasdaq Stock Market in New York and The Nasdaq First North Growth Market in Reykjavik and the warrants of Alvotech are expected to trade on The Nasdaq Stock Market in New York under the new ticker symbol “ALVOW”.
The parties initially announced the $2.25 billion combination on December 7, 2021. Reykjavik, Iceland-based Alvotech is developing medicines that are biosimilar to branded pharmaceuticals on the market, potentially providing them to the market at lower prices.
- Morgan Stanley & Co. LLC and Credit Suisse served as financial advisors to Alvotech.
- Deutsche Bank Securities served as financial advisor and capital markets advisor to Oaktree Acquisition Corp. II.
- Deutsche Bank Securities and Morgan Stanley & Co. LLC served as lead private placement agents, and Citigroup Global Markets Inc. and Credit Suisse also served as private placement agents, for Oaktree Acquisition Corp. II in connection with the PIPE Transaction.
- Cooley (UK) LLP served as lead legal counsel to Alvotech.
- Kirkland and Ellis LLP and King & Spalding served as legal counsel to Oaktree Acquisition Corp. II.
- Shearman & Sterling LLP served as legal counsel to the placement agents.
Latest SPAC Liquidations: Schultze Special Purpose Acquisition Corp. II Schultze Special Purpose Acquisition Corp. II (SAMA) to Liquidate on October 11, 2023 Schultze Special Purpose Acquisition Corp. II (Nasdaq: SAMA), announced that it will redeem all of the outstanding shares of its Class A common stock effective as of October 11, 2023. The Company expects...
Mercato Partners Acquisition Corporation (NASDAQ:MPRA) announced this afternoon via 8-K that its shareholders have approved its combination with Nuvini at a special meeting held earlier today. With 79.74% of the voting power of the Common Stock participating in the vote, the combination was overwhelmingly approved. 7,975,698 shares were recorded voting for the transaction, while only 38,008...
Home Plate Acquisition Corporation (NASDAQ:HPLT) announced that it adjourned this morning’s extension vote without conducting any business and it will pick things up again at 11 am ET October 2. Shareholders at the meeting are to consider giving Home Plate an extra two and half months to complete a deal, moving its deadline from October...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Law firm Schulte sues SPAC over fees from failed Philippine casino merger U.S. law firm Schulte Roth & Zabel is suing its former client 26 Capital Acquisition Corp to recover more than $1.9 million in legal fees...
Fortune Rise Acquisition Corp. (NASDAQ:FRLA) announced this morning that it has changed the target of its letter of intent to combine, but only partially. The SPAC had an existing LOI to merge with its own sponsor, but since that sponsor is now a subsidiary of another company it has to combine with a different version...