PHILADELPHIA, April 9, 2021 /PRNewswire/ -- Lannett Company,
Inc. (NYSE: LCI) (the "Company" or "Lannett") today announced the
pricing of the $350 million aggregate
principal amount of 7.75% senior secured notes due 2026 (the
"Notes") in a private placement to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended
(the "Securities Act") and outside the
United States to persons other than U.S. persons in reliance
upon Regulation S under the Securities Act. The sale of the Notes
to the initial purchasers is expected to settle on April 22, 2021, subject to customary closing
conditions.
The Notes will pay interest only semi-annually in arrears on
April 15 and October 15 of each year, beginning on
October 15, 2021, at a rate of 7.75%
per annum in cash. The Notes will mature on April 15, 2026, unless earlier redeemed or
repurchased in accordance with their terms. The Notes will be
secured by first priority liens on substantially all of the assets
of the Company and the guarantors, other than working capital
assets pledged to secure the Company's asset-based credit facility,
as to which the Notes will be secured on a second lien basis.
The Company intends to use the net proceeds of the Notes
offering, together with other anticipated borrowings under the
separately disclosed junior lien credit facility due in
July 2026 and cash on hand, to repay
its existing Term B Loans, eliminating the associated interest and
amortization payments, and to pay certain related fees and
expenses.
This press release is neither an offer to sell nor a
solicitation of an offer to buy the Notes, nor will there be any
sale of these securities in any state or jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state or jurisdiction.
The Notes have not been and will not be registered under the
Securities Act, or the securities laws of any other jurisdiction,
and may not be offered or sold in the
United States absent registration or an applicable exemption
from registration requirements. The offering of the Notes is being
made to qualified institutional buyers pursuant to Rule 144A under
the Securities Act and outside the United
States to persons other than U.S. persons in reliance upon
Regulation S under the Securities Act.
About Lannett Company, Inc.:
Lannett Company, founded
in 1942, develops, manufactures, packages, markets and distributes
generic pharmaceutical products for a wide range of medical
indications. For more information, visit the company's website at
www.lannett.com.
This news release contains certain statements of a
forward-looking nature relating to future events or future business
performance. Any such statements, including, but not limited
to, the proposed offering of the Notes, the anticipated terms and
the timing and closing of the Notes, the expected use of the net
proceeds from this transaction, whether expressed or implied, are
subject to risks and uncertainties which can cause actual results
to differ materially from those currently anticipated due to a
number of factors which include, but are not limited to, the
difficulty in predicting the timing or outcome of FDA or regulatory
approvals or actions, the ability to successfully manufacture and
commercialize products upon approval, including acquired products,
and the Company's estimated or anticipated future financial
results, future inventory levels, future competition or pricing,
future levels of operating expenses, product development efforts or
performance, and other risk factors discussed in the Company's Form
10-K and other documents filed with the Securities and Exchange
Commission from time to time. These forward-looking statements
represent the Company's judgment as of the date of this news
release. The Company disclaims any intent or obligation to
update these forward-looking statements.
Contact:
|
Robert
Jaffe
|
|
Robert Jaffe Co.,
LLC
|
|
(424)
288-4098
|
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SOURCE Lannett Company, Inc.