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Lannett To Amend Credit Agreement To Repurchase Remaining $200 Million Of 12% Senior Notes

--Company Previously Completed the Repurchase of $50 Million of 12% Senior Notes--

PHILADELPHIA, June 14, 2016 /PRNewswire/ -- Lannett Company, Inc. (NYSE: LCI) today announced that it has reached an agreement with an existing lender to raise an incremental $150 million Term Loan B, and is also seeking to amend certain sections of its existing credit agreement.  The company intends to use the proceeds of the incremental Term Loan B and cash on hand to repurchase the remaining $200 million of the 12% Senior Notes due in 2023.  As announced in late May 2016, the company completed the repurchase of $50 million of the 12% Senior Notes.

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"We are following through on our stated goal of refinancing the entire balance of our high interest debt, and as a result substantially reducing our interest expense going forward," said Arthur Bedrosian, chief executive officer of Lannett.  "At current interest rates, the cumulative effect of these actions through the maturity date of the loans is expected to generate cash interest savings of approximately $170 million.  We look forward to completing this transaction and continuing to grow our business.  Our operations generate strong cash flow, which we intend to use to reduce our outstanding debt."

The incremental Term Loan B is expected to have terms consistent with the company's existing Term Loan B.

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, raising incremental $150 million Term Loan B and the completing the $200 million repurchase of the 12% Senior Notes, 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 other regulatory approvals or actions, the ability to successfully commercialize products upon approval, including acquired products, and Lannett'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.



Robert Jaffe

Robert Jaffe Co., LLC

(424) 288-4098


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SOURCE Lannett Company, Inc.

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