Lannett Company Inc (NYSE:LCI), a provider of generic pharmaceutical products, said on Tuesday that it plans to issue USD75m aggregate principal amount of convertible senior notes due 2026 in a private placement subject to market conditions and other factors.

The company added that it will provide the initial purchaser of the notes with a 30-day option to purchase up to an additional USD11.25m aggregate principal amount of the notes.

According to the company, the notes are expected to pay interest semiannually. Conversion of the Notes will be settled in shares of its common stock. The notes will mature on 1 October 2026, unless earlier converted, redeemed or repurchased in accordance with their terms.

Net proceeds from the offering may be used by the company to pay the cost of the capped call transaction, to repay a portion of its existing Term Loan A under its existing senior credit facility, to enter into an additional capped call transaction with the capped call counterparty as well as to repay a portion of its existing Term Loan A under its existing senior credit facility.