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Post by chc on May 25, 2018 14:59:49 GMT -5
Does anyone know if this changes the $25 million in cash Mannkind is required to have at end of qtr to possibly $20 million in cash?
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Post by dreamboatcruise on May 25, 2018 15:51:08 GMT -5
Does anyone know if this changes the $25 million in cash Mannkind is required to have at end of qtr to possibly $20 million in cash? It does not.
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Post by babaoriley on May 25, 2018 16:05:41 GMT -5
baba, do you steak your reputation on such comments? Gosh, I hope you don't have a beef with me, BD!
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Post by rockstarrick on May 25, 2018 16:20:59 GMT -5
baba, do you steak your reputation on such comments? Gosh, I hope you don't have a beef with me, BD! Iโm 15 minutes away from sound check and literally dying reading this convoluted thread. My Musical brain will implode if I donโt put this pad down. ๐๐๐ โ๐ป๐ธ ๐
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Post by tbone on May 25, 2018 19:34:20 GMT -5
To help support your pessimistic view, we could say that while DF paid approximately a 30 cent premium for shares, MannKind accepted a 2.90 discount. ๐ณ That argument is specious and of no support, and I suggest you know that, tbone.ย Perhaps if you were a porterhouse or filet, you'd have more gravitas. Ribeye medium rare is my steak of choice. Nothing comes close and I suggest you know that, Baba! ๐ I was simply giving you a more negative way to look at the price of the conversion in order to lend support to your pessimism. I was in this stock at IPO and for years along the way. Like you, I learned long ago that humor is about all we have to ameliorate the pain that comes with being a mnkd shareholder. My name is Troy. Thatโs where tbone comes from.
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Post by babaoriley on May 25, 2018 22:25:08 GMT -5
tbone, sorry, man, mistook your humor for something other than that; I take it all back and now find your post pretty darn funny! Yes, I use humor and sarcasm, which I hope is funny, to combat the feeling I get from my various losing stocks. Have a lot of experience at it! Can't argue with your choice of steak, either! We've both been in from the IPO, but it wasn't a sure thing until FDA approval...
But we seem to be gathering a little momentum in scripts and perhaps a lot of momentum with Mike C. and David K. We definitely are in with a shot!
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Post by cretin11 on May 26, 2018 7:35:29 GMT -5
Gosh, I hope you don't have a beef with me, BD! Iโm 15 minutes away from sound check and literally dying reading this convoluted thread. ย My Musical brain will implode if I donโt put this pad down. ๐๐๐ โ๐ป๐ธ ๐ Maybe not the best idea to read the MNKD board before a gig! ๐๐คฏ๐คช
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Post by oldfishtowner on May 26, 2018 12:04:32 GMT -5
Yes, the conversion price is $5.15, of course, that's pretty much moot at this point (it also provided that price would be adjusted as is customary, and I assume that would mean if there were a stock split, forward or reverse). That's a horrible interest rate for the note holder (for a MNKD Note, anyway), especially coupled with that conversion price. So, my guess is the beneficial holder(s) of that portion of the note came to MNKD and said - we want out now, and we're willing to pay a premium, they did, they got the stock and they have likely already sold it. My bullish friends are able to put a positive spin on just about anything; my pessimistic outlook on the world in general and MNKD in particular leads me to a different analysis.
How could I forget? Sla, you are incredible!!
To help support your pessimistic view, we could say that while DF paid approximately a 30 cent premium for shares, MannKind accepted a 2.90 discount. ๐ณ Why are some associating this conversion with Deerfield? From what I recall, MNKD has never revealed the identity of the holders of these notes. The 5.75% 2021 notes are clearly not part of the remaining $45 million for the Facility Agreement with Deerfield (2019 notes and Tranche B notes) as it is clear from the discussions of the note in the 10Qs and 10Ks.
It also raises the question why anyone would speculate that the partial conversion of the 2021 notes would have any impact on the $25 million escrow required by Deerfield.
A $15 million payment is due in July on the Deerfield 2019 notes. Subsequent to that payment, only $30 million will remain on the Deerfield notes, so it is possible that the escrow requirement would be revised at that point. If not, it would make sense for MNKD to raise enough cash in its next financing to provide the extra $5 million to pay off the Deerfield notes in their entirety (5 million + 25 million in reserve) rather than keep paying interest on the loan.
I would speculate that the $15 million due will be partially converted to stock and the remaining be paid on cash from the $25 million held in reserve, and the escrow requirement would be appropriately reduced.
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Post by agedhippie on May 26, 2018 13:17:49 GMT -5
Why are some associating this conversion with Deerfield? From what I recall, MNKD has never revealed the identity of the holders of these notes. The 5.75% 2021 notes are clearly not part of the remaining $45 million for the Facility Agreement with Deerfield (2019 notes and Tranche B notes) as it is clear from the discussions of the note in the 10Qs and 10Ks.
It also raises the question why anyone would speculate that the partial conversion of the 2021 notes would have any impact on the $25 million escrow required by Deerfield.
A $15 million payment is due in July on the Deerfield 2019 notes. Subsequent to that payment, only $30 million will remain on the Deerfield notes, so it is possible that the escrow requirement would be revised at that point. If not, it would make sense for MNKD to raise enough cash in its next financing to provide the extra $5 million to pay off the Deerfield notes in their entirety (5 million + 25 million in reserve) rather than keep paying interest on the loan.
I would speculate that the $15 million due will be partially converted to stock and the remaining be paid on cash from the $25 million held in reserve, and the escrow requirement would be appropriately reduced. It was Deerfield. The notes settled were issued as part of the debt restructuring on October 30, 2017 (the notes date of issue is in the 8K that was filed, these were the only notes issued on that date). The use of the term escrow for the $25M is sloppy and is the reason why it should not be speedily settled. If this was really an escrow Mannkind would not have access to the money, but they do. The contract says that there must be $25M at the end of the quarter, but not what it has to be between quarters. It is possible to dip into the money provided it is replaced by the end of the quarter so it provides operating flexibility. Pay the debt off and that flexibility is gone. Even so it may be worth paying off if you could replace the facility with a similar sized facility without the quarterly restriction. At the moment however it would be challenging to do that at a reasonable cost. Bottom line - the remaining $30M costs around $1.5M a year in interest, it's worth it.
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Form 8-K
May 26, 2018 13:34:45 GMT -5
via mobile
Post by sportsrancho on May 26, 2018 13:34:45 GMT -5
To help support your pessimistic view, we could say that while DF paid approximately a 30 cent premium for shares, MannKind accepted a 2.90 discount. ๐ณ Why are some associating this conversion with Deerfield?ย From what I recall, MNKD has never revealed the identity of the holders of these notes.ย The 5.75% 2021 notes are clearly not part of the remaining $45 million for the Facility Agreement with Deerfield (2019 notes and Tranche B notes) as it is clear from the discussions of the note in the 10Qs and 10Ks.ย
It also raises the question why anyone would speculate that the partial conversion of the 2021 notes would have any impact on the $25 million escrow required by Deerfield.
A $15 million payment is due in July on the Deerfield 2019 notes.ย Subsequent to that payment, only $30 million will remain on the Deerfield notes, so it is possible that the escrow requirement would be revised at that point.ย If not, it would make sense for MNKD to raise enough cash in its next financing to provide the extra $5 million to pay off the Deerfield notes in their entirety (5 million +ย 25 million in reserve) rather than keep paying interest on the loan.
I would speculate that the $15 million due will be partially converted to stock and the remaining be paid on cash from the $25 million held in reserve, and the escrow requirement would be appropriately reduced. US Bank right?
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Post by babaoriley on May 26, 2018 13:56:56 GMT -5
Why are some associating this conversion with Deerfield? From what I recall, MNKD has never revealed the identity of the holders of these notes. The 5.75% 2021 notes are clearly not part of the remaining $45 million for the Facility Agreement with Deerfield (2019 notes and Tranche B notes) as it is clear from the discussions of the note in the 10Qs and 10Ks.
It also raises the question why anyone would speculate that the partial conversion of the 2021 notes would have any impact on the $25 million escrow required by Deerfield.
A $15 million payment is due in July on the Deerfield 2019 notes. Subsequent to that payment, only $30 million will remain on the Deerfield notes, so it is possible that the escrow requirement would be revised at that point. If not, it would make sense for MNKD to raise enough cash in its next financing to provide the extra $5 million to pay off the Deerfield notes in their entirety (5 million + 25 million in reserve) rather than keep paying interest on the loan.
I would speculate that the $15 million due will be partially converted to stock and the remaining be paid on cash from the $25 million held in reserve, and the escrow requirement would be appropriately reduced. US Bank right? Merely the trustee. Could be Digger and DBC that are the real parties in interest. But I believe the Aged one is correct.
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Post by thekindaguyiyam on May 26, 2018 18:41:41 GMT -5
baba, do you steak your reputation on such comments? Gosh, I hope you don't have a beef with me, BD! I wouldn't worry about it baba; as to error is human, but to forgive, bovine.
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Form 8-K
May 26, 2018 19:05:19 GMT -5
via mobile
Post by mike0475 on May 26, 2018 19:05:19 GMT -5
This board is getting off topic. Credibility is a concern
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Post by falconquest on May 26, 2018 20:20:49 GMT -5
This board is getting off topic. Credibility is a concern Credibility? Wait, this is the Mannkind board, remember?
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Post by cjm18 on May 26, 2018 20:51:58 GMT -5
Letโs get it back on topic then.
Why is mannkind diluting our shares on debt not due for 3 years? Wasnโt that the whole point of restructuring the debt to be due later?
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