PHILADELPHIA, Sept. 27, 2019 /PRNewswire/ -- Lannett
Company, Inc. (NYSE: LCI) ("Lannett" or the "Company") today
announced the closing of $86.25
million aggregate principal amount of 4.50%
convertible senior 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"). Lannett granted the initial purchaser of the Notes a 30-day
option to purchase up to an additional $11.25 million aggregate principal amount of the
Notes, which option the initial purchaser exercised in full.
"We are pleased to have successfully completed our recent
convertible note offering that has strengthened our capital
structure by replacing variable interest rate debt that matures in
November 2020 with a substantially
lower fixed interest rate convertible bond that matures in
October 2026," said Tim Crew, chief executive officer of Lannett.
"Our cash balances, following the pay down of the Term A Loan, will
exceed the outstanding remaining balance of our Term A Loan.
Moreover, the convertible debt is excluded in the calculation of
our leverage ratio covenants. We continue to evaluate options
with regard to further improving our capital structure."
This press release is neither an offer to sell nor a
solicitation of an offer to buy the Notes or the shares of the
Company's common stock issuable upon conversion of 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 and the shares of the Company's common stock issuable
upon conversion of 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.
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 statement, including, but not limited to, the
expected use of the net proceeds from this transaction, whether
expressed or implied, is subject to market and other conditions,
and 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
risk factors discussed in the Company's Form 10-K and other
documents filed with the Securities and Exchange Commission (SEC)
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.
Lannett
Contact:
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Robert
Jaffe
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Robert Jaffe Co.,
LLC
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(424)
288-4098
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SOURCE Lannett Company, Inc.