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Post by hellodolly on Jun 11, 2018 9:35:21 GMT -5
Why are we dealing with debt not due until December 2019? Somwthing else in the works. I dont know if something else is in the work because with mnkd it doesnt always make sense but i dont understand either why dealing with debt due so far in the futur. Isnt it the point , when you sign those agrements, to put a date on it, so that you wont have to deal with it until then? Someone have an explaination why it is helpful to do it now? To me its like saying '' we are SO darn sure the share price will not go up in the next 18 months that we better close the deal right now,even if its dilutive, before it goes even lower.'' what am i missing? Someone ever saw this with another stock? $AMD - That is how they lived and survived for years until they became profitable, just this year. Common business practices used when resolving debt and/or debt reduction. Bet the farm Deerfield knows this well in advance...exchange debt for equity...and they'll keep doing it until MNKD doesn't need their help.
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Post by Deleted on Jun 11, 2018 9:36:55 GMT -5
Key here is the following: Schedule 1.01(a) Application of Conversions to Principal Payments Order of application of Conversions Tranche of Note to which Converted Principal is Applied Principal Amount and Principal Payment Date to which Converted Principal is applied First Tranche B $2,000,000 due on December 31, 2019 Second Tranche 4 $2,500,000 due on July 18, 2018 Third Tranche 4 $2,500,000 due on December 31, 2019 Fourth Tranche 4 $2,500,000 due on July 18, 2018 Fifth Tranche 4 $2,500,000 due on December 31, 2019 Sixth Tranche 4 $2,500,000 due on July 18, 2018 Seventh Tranche 4 $2,500,000 due on July 18, 2019 Eighth Tranche 4 $2,500,000 due on July 18, 2018 Ninth Tranche 4 $2,500,000 due on July 18, 2019 Tenth Tranche B $2,500,000 due on May 6, 2019 Eleventh Tranche 4 $2,500,000 due on July 18, 2019 Twelfth Tranche B $2,500,000 due on May 6, 2019 Thirteenth Tranche 4 $2,500,000 due on July 18, 2019 Fourteenth Tranche 1 $5,000,000 due on July 1, 2019 Fifteenth Tranche 1 $2,000,000 due on July 1, 2018 Another 12m due next month.
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Post by celo on Jun 11, 2018 9:39:38 GMT -5
Key here is the following: Schedule 1.01(a) Application of Conversions to Principal Payments Order of application of Conversions Tranche of Note to which Converted Principal is Applied Principal Amount and Principal Payment Date to which Converted Principal is applied First Tranche B $2,000,000 due on December 31, 2019 Second Tranche 4 $2,500,000 due on July 18, 2018 Third Tranche 4 $2,500,000 due on December 31, 2019 Fourth Tranche 4 $2,500,000 due on July 18, 2018 Fifth Tranche 4 $2,500,000 due on December 31, 2019 Sixth Tranche 4 $2,500,000 due on July 18, 2018 Seventh Tranche 4 $2,500,000 due on July 18, 2019 Eighth Tranche 4 $2,500,000 due on July 18, 2018 Ninth Tranche 4 $2,500,000 due on July 18, 2019 Tenth Tranche B $2,500,000 due on May 6, 2019 Eleventh Tranche 4 $2,500,000 due on July 18, 2019 Twelfth Tranche B $2,500,000 due on May 6, 2019 Thirteenth Tranche 4 $2,500,000 due on July 18, 2019 Fourteenth Tranche 1 $5,000,000 due on July 1, 2019 Fifteenth Tranche 1 $2,000,000 due on July 1, 2018 Thats a lot of tranches to cross.
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Post by barnstormer on Jun 11, 2018 9:46:07 GMT -5
Roughly $40 million. Could be retired qucikly with a strong partner an up front & milestone payments.
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Post by myocat on Jun 11, 2018 10:03:12 GMT -5
I am not sure why my post got moved or deleted. I did not rant, or used F word but stating opinion.
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Post by liane on Jun 11, 2018 10:11:12 GMT -5
myocat - I don't see that any of your posts were moved or deleted in the past 24h.
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Post by gareaudan on Jun 11, 2018 10:26:20 GMT -5
It's so comforting we have so many experts here to question the company's financial restructuring moves! I mean, several people on this thread and others are pointing out things that Mike, our CFO, inside counsel, and outside counsel missed. If those people were as savvy as many here, we probably would have had the entire debt forgiven by now. What are we paying our management for, anyway? This is a relatively minor tweak in the whole financing fabric; we got something and so did Deerfield. Is that so surprising? Do not look for the layers of meaning here, not much of anything, and would be difficult to draw any legitimate conclusions about the impact on the stock price or the company in general. Unless the conclusion you draw is this is no big deal and whoever says it is and means the share price won't go anywhere is full of it. dont know if you are refering to me but it is exactly because Iam not an expert that Iam asking the question... I thought that was the point of having a message board, asking questions and saying your opinion about stuff. Sure the management board are more qualified than me but for some reason, in the last years they have not been able to sell our only product or make a significant raise in the share price so i think we have at least the right to ask question to try to understand their decisions no? If you want to follow blindly the management team, fine with me but i prefer to try to understand where my money goes
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Post by brotherm1 on Jun 11, 2018 12:30:54 GMT -5
I dont know if something else is in the work because with mnkd it doesnt always make sense but i dont understand either why dealing with debt due so far in the futur. Isnt it the point , when you sign those agrements, to put a date on it, so that you wont have to deal with it until then? Someone have an explaination why it is helpful to do it now? To me its like saying '' we are SO darn sure the share price will not go up in the next 18 months that we better close the deal right now,even if its dilutive, before it goes even lower.'' what am i missing? Someone ever saw this with another stock? $AMD - That is how they lived and survived for years until they became profitable, just this year. Common business practices used when resolving debt and/or debt reduction. Bet the farm Deerfield knows this well in advance...exchange debt for equity...and they'll keep doing it until MNKD doesn't need their help.
AMD is the company I often think about when we need to raise cash. . They were unprofitable forever and kept diluting. Amazing, Wall Street kept finding funding all those years. And now their PE ratio is 392-1
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Post by awesomo on Jun 11, 2018 12:36:46 GMT -5
You can easily find funding when it is so easy for firms to hedge and essentially guarantee profits even if the company fails. Just look at Deerfield, they don't care if MannKind becomes the diabetic standard of care or goes bankrupt, they just play the middle game.
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Post by hellodolly on Jun 11, 2018 13:17:35 GMT -5
$AMD - That is how they lived and survived for years until they became profitable, just this year. Common business practices used when resolving debt and/or debt reduction. Bet the farm Deerfield knows this well in advance...exchange debt for equity...and they'll keep doing it until MNKD doesn't need their help.
AMD is the company I often think about when we need to raise cash. . They were unprofitable forever and kept diluting. Amazing, Wall Street kept finding funding all those years. And now their PE ratio is 392-1 I've been holding AMD for all these years, too. Just like MNKD, I've been adding and patiently waiting...although I didn't get in at 40 PPS with MNKD.
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Post by Deleted on Jun 11, 2018 14:30:43 GMT -5
Perhaps this impacts the DF $25mm covenant for cash on hand.
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Post by Deleted on Jun 11, 2018 14:45:05 GMT -5
Perhaps this impacts the DF $25mm covenant for cash on hand. I read the filing. Now its only $20mm.
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Post by babaoriley on Jun 11, 2018 15:03:35 GMT -5
It's so comforting we have so many experts here to question the company's financial restructuring moves! I mean, several people on this thread and others are pointing out things that Mike, our CFO, inside counsel, and outside counsel missed. If those people were as savvy as many here, we probably would have had the entire debt forgiven by now. What are we paying our management for, anyway? This is a relatively minor tweak in the whole financing fabric; we got something and so did Deerfield. Is that so surprising? Do not look for the layers of meaning here, not much of anything, and would be difficult to draw any legitimate conclusions about the impact on the stock price or the company in general. Unless the conclusion you draw is this is no big deal and whoever says it is and means the share price won't go anywhere is full of it. dont know if you are refering to me but it is exactly because Iam not an expert that Iam asking the question... I thought that was the point of having a message board, asking questions and saying your opinion about stuff. Sure the management board are more qualified than me but for some reason, in the last years they have not been able to sell our only product or make a significant raise in the share price so i think we have at least the right to ask question to try to understand their decisions no? If you want to follow blindly the management team, fine with me but i prefer to try to understand where my money goes Absolutely textbook response, gareaudan, I will leave it to others to "name that textbook."
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Post by gareaudan on Jun 11, 2018 15:12:55 GMT -5
dont know if you are refering to me but it is exactly because Iam not an expert that Iam asking the question... I thought that was the point of having a message board, asking questions and saying your opinion about stuff. Sure the management board are more qualified than me but for some reason, in the last years they have not been able to sell our only product or make a significant raise in the share price so i think we have at least the right to ask question to try to understand their decisions no? If you want to follow blindly the management team, fine with me but i prefer to try to understand where my money goes Absolutely textbook response, gareaudan, I will leave it to others to "name that textbook." textbook of reasonnable peoples?
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Post by matt on Jun 11, 2018 15:24:25 GMT -5
Why are we dealing with debt not due until December 2019? Somwthing else in the works. This is called managing your duration. Duration is a fairly esoteric financial topic that is mainly of interest to fund managers who have long-term liabilities and long-term assets. Without going into detail, the goal for the manager is to roughly approximate the duration of your assets and the duration of your liabilities. For example, if you are a life insurance company with a bunch of policies expected to pay out in an average of 25 years, you don't want assets that mature in 20 years or 30 years because then you have a mismatch. Deerfield can shorten the duration of their asset (the debt due from MNKD) by playing a little hard ball. In recent deals, they have rearranged the timing of MNKD's future commitments so that cash received in the near term is applied to debts that would otherwise be due in the longer term. That reduces the duration of their portfolio and their risk. By moving payments earlier in time, they get the certainty of cash now (or soon) instead of the uncertainty of cash later, and they still have a security interest is the assets of the company. This is equivalent to what happens to a bank when a borrower decides to pay off their mortgage sooner rather than later; if the mortgage was due to run for another 15 years but the homeowner has paid it down such that the remaining balance amortizes over 5 years, the bank has less risk of default but still holds a first mortgage on the value of the entire house. It should also be noted that sometimes debt pools are arranged in tranches, and different people own different tranches. Deerfield is a debt fund, but they get their money from various investors with whom they do business. There may be certain tranche holders that want their money back and have offered to give Deerfield a bonus of some sort for liquidating a particular tranche of payments earlier than planned. Those dealings are between Deerfield and their private investor so we cannot know if such arrangements exist or not, but it would not be uncommon.
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