PL Developments Marks Strategic Advances with FDA Approval and Debt Refinancing

MIAMI and WESTBURY, N.Y., Oct. 28, 2024 /PRNewswire/ — PL Developments (PLD), notable in consumer healthcare, has reached two important milestones: FDA approval for its Omeprazole OTC ANDA and successful refinancing of its corporate debt.

Approval of Omeprazole OTC

The FDA has approved PLD’s Omeprazole Magnesium Tablet, which is comparable to Prilosec^® OTC. This product will be manufactured at PLD’s facility in Miami, FL. Notably, PLD will be the only provider of Omeprazole OTC made in the United States, showcasing the company’s capacity to develop and commercialize complex healthcare products.

“Receiving FDA approval for Omeprazole OTC is a significant achievement for our organization,” stated Evan Singer, President of PLD. “This accomplishment highlights our team’s expertise in bringing complex products to market and reinforces our role as a comprehensive supply partner for our customers. We aim to provide a wide array of healthcare products that meet high standards of quality and reliability.”

The Omeprazole OTC market in the United States is lucrative, with annual retail sales of approximately $550 million. PLD anticipates starting commercial shipments of Omeprazole to clients in early 2025.

Successful Corporate Debt Refinancing

Additionally, PLD has successfully completed its offer to exchange (the “Exchange Offer”) $350,000,000 worth of its outstanding 7.750% Senior Secured Notes due 2025 for new PIK Toggle Senior Secured Notes due 2029, totaling $368,550,000. This move, aided by improved financial performance and collaboration with key stakeholders, boosts the company’s financial flexibility and supports future growth plans.

In conjunction, PLD signed a commitment letter with certain Old Notes holders to issue additional New Notes worth $131,450,000 (termed the “Concurrent Financing”). The funds from this financing will be used to settle remaining Old Notes and cover related fees and expenses.

“The successful completion of the Exchange Offer confirms PLD’s financial health and growth prospects,” remarked Asaph Naaman, Chief Financial Officer. “This achievement showcases our focus on operational efficiency and generating free cash flow, positioning us well for future opportunities.”

The New Notes from the Exchange Offer and those from the Concurrent Financing will not be registered under the Securities Act or applicable securities laws. This press release is intended for informational purposes only and does not offer to buy the Old Notes or solicit offers for the New Notes.

Statements in this release that are not historical facts, including beliefs and expectations, are forward-looking statements according to the Private Securities Litigation Reform Act of 1995.

About PLD

Founded in 1988 and based in Westbury, NY, PL Developments is a key player in the development, manufacturing, packaging, and distribution of consumer healthcare products. The company operates pharmaceutical manufacturing facilities across the United States, spanning approximately 2 million square feet and employing 1,800 people. PLD primarily caters to US retailers and Consumer Packaged Goods (CPG) firms, offering more than 450 unique products in various healthcare categories.

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SOURCE PL Developments