Lannett plans to use incremental term loan B to buy back 12% notes

By Angela McDaniels

Tacoma, Wash., June 13 – Lannett Co. Inc. is seeking a $150 million incremental term loan B and plans to use the proceeds and cash on hand to repurchase the remaining $200 million balance of its 12% senior notes due 2023, according to an 8-K filing with the Securities and Exchange Commission.

The company will need to amend its credit agreement before it can borrow the incremental term loan B.

The credit agreement currently provides for a $271.6 million term loan A, a $627.1 million term loan B and a $125 million revolving credit facility.

The company expects the transaction to decrease its total debt to $1.17 billion from $1.22 billion, its leverage to 3.5 times from 3.6 times and its cash on hand to $245.5 million from $300.4 million.

Lannett is a Philadelphia-based manufacturer of generic pharmaceutical products.

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