Lannett Purchases Additional $30.5 Million Of Term A Loans

Lannett Company, Inc. (NYSE: LCI) today announced that it completed the purchase of approximately $30.5 million, face value, of its Term A Loans in a private transaction.

“We are particularly pleased to use our strong cash position to continue to reduce our Term A Loans, which have a nearer term maturity than our Term B Loans,” said Tim Crew, chief executive officer of Lannett. “With this transaction, we have substantially and strategically reduced our debt levels and future expected interest payments. After closing this transaction, our outstanding Term Loan A balance now stands at approximately $168 million. As we have said previously, we will continue to assess opportunities to further improve our capital structure.”

Crew noted that the company’s solid financial performance over the last three quarters contributed to its ability to purchase the Term A Loans prior to maturity. In March 2019, the company completed the purchase of approximately $24 million principal amount of its Term A and Term B Loans in open market transactions, bringing the total purchases of its Term Loans to approximately $55 million over the last three months. These amounts are in addition to the company’s required annual principal payments of approximately $67 million. – Bio Space