By Paul A. Harris
Portland, Ore., April 8 – Lannett Co. Inc. priced a $350 million issue of five-year senior secured notes (B1/B) at par to yield 7¾% on Thursday, according to market sources.
The yield printed at the tight end of the 7¾% to 8% yield talk. Early guidance was in the 8% area.
Credit Suisse Securities (USA) LLC ran the books.
The Philadelphia-based generic drug supplier plans to use the proceeds plus a new second-lien facility to refinance its term loan B.
| Issuer: | Lannett Co. Inc.
|
| Amount: | $350 million
|
| Maturity: | April 15, 2026
|
| Securities: | Senior secured notes
|
| Bookrunner: | Credit Suisse Securities (USA) LLC
|
| Co-manager: | Wells Fargo Securities LLC
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 691 bps
|
| First call: | April 15, 2023 at 103.875
|
| Special call: | 10% of notes annually at 103 during non-call period
|
| Equity clawback: | 35% at 107.75 until April 15, 2023
|
| Trade date: | April 8
|
| Settlement date: | April 22
|
| Ratings: | Moody's: B1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Roadshow
|
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