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on December 21, 2016

Hain gets lender limited waiver, credit extension

Hain Celestial hopes to get into compliance with borrowing obligations and financial reporting regulations

Hain Celestial has been offered a second limited waiver and extension of certain obligations under its unsecured credit facility from its lenders until February 27, 2017, the company announced in a press release.

The waiver and extension relate to the delivery of Hain Celestial’s financial statements for fiscal year 2016, first quarter of fiscal year 2017, and if necessary, the second quarter of fiscal year 2017, concurrent with the compliance extension previously granted by the Nasdaq Stock Market.

This will allow Hain Celestial, parent company of poultry business Hain Pure Protein, to be compliant with its borrowing obligations while the Company works to complete the filing of its annual report on Form 10-K for its fiscal year ended June 30, 2016 as well as its first quarter and second quarter fiscal year 2017 financial statements. The unsecured $1 billion senior credit facility is scheduled to mature in December 2019 and may be increased by an additional $350 million provided certain conditions are met.

Hain Celestial had previously announced on August 15, that during the fourth quarter of fiscal year 2016 it had identified concessions that were granted to certain distributors in the United States and that the audit committee had retained independent counsel to assist in its independent review of such matter. The review, which was extensive, found no evidence of intentional wrongdoing in connection with the company's financial statements.

"We are pleased to receive the continued full support of our bank group led by Bank of America Merrill Lynch and Wells Fargo in securing this waiver and extension as we move forward in our reporting process," said Irwin D. Simon, founder, president and chief executive officer of Hain Celestial.  "We continue to have operating flexibility for a solid financial platform with working capital and acquisition capital to support our strategic growth initiatives."

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