|
Form 8-K
May 25, 2018 8:45:06 GMT -5
via mobile
Post by cjm18 on May 25, 2018 8:45:06 GMT -5
But why? This wasn’t due for years. This does lower interest expense. It’s a premium Bc it wasn’t due for years. Maybe the debt holder expects a large increase in share price in the near future. Or mannkind expects a share price decline.
|
|
|
Post by boca1girl on May 25, 2018 8:58:49 GMT -5
Maybe the debt holder expects a large increase in share price in the near future. Or mannkind expects a share price decline. If so, why would the debt holder agree to a premium on the stock price?
|
|
|
Post by boca1girl on May 25, 2018 8:59:58 GMT -5
Go figure, with all those Firm 4 filings! Completely obvious what’s coming! Can you please explain the obvious?
|
|
|
Post by peppy on May 25, 2018 9:00:52 GMT -5
Consider it was the lender that came to MNKD with the proposal? Any chance?
|
|
|
Form 8-K
May 25, 2018 9:03:20 GMT -5
via mobile
Post by cjm18 on May 25, 2018 9:03:20 GMT -5
Or mannkind expects a share price decline. If so, why would the debt holder agree to a premium on the stock price? Mannkind has more information to draw that conclusion than the debtholder.
|
|
|
Post by mike0475 on May 25, 2018 9:10:21 GMT -5
Essentially no one here knows
Let’s be happy with some sheet clean up Another negotiation completion - could be worse could have been none.
Agreement above current ave
Scripts continue
Ada around the corner
|
|
|
Post by barnstormer on May 25, 2018 9:21:06 GMT -5
When a bank is willing to take common stock shares (no security) for a secured note with 2+ years left, something big must be behind the move. Under their non-disclosure Mike can discuss things with them that would make the deal good for them.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on May 25, 2018 9:29:22 GMT -5
What do you think is coming? Long time PB follower first time posting.
|
|
|
Post by mnkdfann on May 25, 2018 9:29:30 GMT -5
Or mannkind expects a share price decline. If so, why would the debt holder agree to a premium on the stock price? If the holder (Deerfield, I think) wants out of these notes and it was its idea, then it makes sense that Mannkind would want to get the best deal it can to agree to this. Hence the holder has to accept taking the shares at a premium, in order to convert the debt (which perhaps it feels it has little chance of collecting on) for shares it can sell for cash now. I'm not saying the above is what happened, but it fits what we know and would explain the premium. FWIW, I presume these are the notes in question. www.sec.gov/Archives/edgar/data/899460/000119312517316062/d422089dex992.htm
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on May 25, 2018 9:34:16 GMT -5
When a bank is willing to take common stock shares (no security) for a secured note with 2+ years left, something big must be behind the move. Under their non-disclosure Mike can discuss things with them that would make the deal good for them. Does anyone remember the original conversion price? Don't think a big move is coming. 2M shares is not a difference maker.
|
|
|
Post by peppy on May 25, 2018 9:42:04 GMT -5
When a bank is willing to take common stock shares (no security) for a secured note with 2+ years left, something big must be behind the move. Under their non-disclosure Mike can discuss things with them that would make the deal good for them. Does anyone remember the original conversion price? Don't think a big move is coming. 2M shares is not a difference maker. The first deerfield payback, was it 1.39? 10,000 shares?
|
|
|
Post by tbone on May 25, 2018 9:48:02 GMT -5
The notes are convertible at $5.15.
With regards to why DF would accept shares at a premium, assume you hold debt of MNKD due in 2021 and paying 5.75%. You want to sell this debt today. What do you think $1000 of this debt would fetch in the open market?
|
|
|
Post by agedhippie on May 25, 2018 10:05:06 GMT -5
When a bank is willing to take common stock shares (no security) for a secured note with 2+ years left, something big must be behind the move. Under their non-disclosure Mike can discuss things with them that would make the deal good for them. That would also be insider trading and the bank compliance department would have stopped it. An NDA allows the sharing of information, trading on that information is another thing. It is why companies have trading blackout periods - certain employees have confidential information, but they cannot trade on it or it is insider trading.
|
|
|
Post by peppy on May 25, 2018 10:11:07 GMT -5
When a bank is willing to take common stock shares (no security) for a secured note with 2+ years left, something big must be behind the move. Under their non-disclosure Mike can discuss things with them that would make the deal good for them. That would also be insider trading and the bank compliance department would have stopped it. An NDA allows the sharing of information, trading on that information is another thing. It is why companies have trading blackout periods - certain employees have confidential information, but they cannot trade on it or it is insider trading. hahahaha I have recently been educated more regarding NDA.
|
|
|
Post by babaoriley on May 25, 2018 10:45:53 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!!
|
|