Lannett Pays Off, In Full, Remaining Term A Loans

Rhea-AI Summary

Lannett Company (NYSE: LCI) announced it has fully paid off the remaining $42 million balance of its Term A Loans using cash on hand. This repayment is projected to reduce annual interest expenses by approximately $3 million and principal payments by $27 million. CEO Tim Crew emphasized that this move strengthens the balance sheet and enhances financial flexibility since the remaining debt lacks financial covenants. The company's commitment to improving its long-term financial health is evident through this strategic decision.

Positive

• Full repayment of $42 million Term A Loans enhances financial health.
• Annual interest expense reduced by approximately $3 million.
• Principal payments decreased by approximately $27 million.
• Remaining debt free of financial covenants increases flexibility.

Negative

• None.

PHILADELPHIA, Nov. 30, 2020 /PRNewswire/ -- Lannett Company, Inc. (NYSE: LCI) today announced that the company used a portion of its existing cash on hand to pay off, in full, the remaining $42 million outstanding balance of its Term A Loans.

"Paying off our Term A Loans is an important achievement and a key step toward strengthening our balance sheet and improving our long-term financial health," said Tim Crew, chief executive officer of Lannett. "This payoff will result in annual reductions of interest expense and principal payments of approximately $3 million and $27 million, respectively. At the same time, we have enhanced our financial flexibility, as the company's remaining debt is free of financial covenants."

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, successfully paying off the company's remaining outstanding debt, 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 SEC from time to time, including the prospectus supplement related to the proposed offering to be filed with the SEC.  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.

FAQ

What financial impact does Lannett's loan payoff have?

Lannett's payoff of $42 million in Term A Loans will save the company approximately $3 million in annual interest expenses and $27 million in principal payments.

How does paying off loans affect Lannett's stock?

By paying off its loans, Lannett strengthens its balance sheet and financial health, which could positively influence investor confidence and stock performance.

What type of loans did Lannett pay off?

Lannett paid off the remaining balance of its Term A Loans totaling $42 million.

What is Lannett's remaining debt situation?

Post payment, Lannett's remaining debt is free of financial covenants, providing more financial flexibility.