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.

"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.