Lannett expects to price $350 million five-year first-lien notes Thursday, initial guidance 8% area

By Paul A. Harris

Portland, Ore., April 6 – Lannett Co. Inc. expects to price a $350 million offering of five-year first lien notes (B1) on Thursday, according to market sources.

The deal, which was set to kick off on a Tuesday conference call with investors, is in the market with early guidance in the 8% area, a trader said.

Credit Suisse Securities (USA) LLC has the books. Wells Fargo Securities LLC is the co-manager.

The Rule 144A and Regulation S notes become callable after two years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes also feature a two-year 35% equity clawback and a 101% poison put.

The Philadelphia-based generic drug supplier plans to use the proceeds plus a new second-lien facility to refinance its term loan B.

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