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Post by agedhippie on Aug 7, 2019 17:26:13 GMT -5
Mike recently told me personally that Deerfield has been very good to us and so I am trusting him, if he decides to get a lone.... that he will get a nondilutive deal done with whoever he feels is best. Of course they were good. Deerfield made LOAN SHARK Money off of MNKD. I don't blame them because MNKD was desperate. And yes DF bent over backwards to accommodate MNKD. There were several times DF could have put MNKD into Default. Now MKND will shop their new deal with better terms. IMO they will refinance MANN GROUP's $71.5M and get additional capital (maybe $100M - $150M) with a decent rate (6% - 7.5%) and a 2025 exp. date. Let's see if my years of experience in corporate bonds are accurate. The results are in. The rate is 8.75% and will rise in step if Libor goes over 2% ending in 2024. The loan is a maximum of $75M if all the milestones are hit, with an initial $40M. Repayment monthly from September 1, 2021. Same deal as Deerfield on security although the cash escrow is lower. Edit: Whoops. Nearly missed the warrants. They get 3.25% of the amount drawn, divided by the exercise price per share for that tranche. Tranche 1 - Mannkind issued warrants to purchase an aggregate of 1,171,614 shares at $1.12 with an expiry of seven(!) years. At the end of this there is a 6% exit fee.
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Post by alethea on Aug 7, 2019 17:51:17 GMT -5
Mike recently told me personally that Deerfield has been very good to us and so I am trusting him, if he decides to get a lone.... that he will get a nondilutive deal done with whoever he feels is best. Of course they were good. Deerfield made LOAN SHARK Money off of MNKD. I don't blame them because MNKD was desperate. And yes DF bent over backwards to accommodate MNKD. There were several times DF could have put MNKD into Default. Now MKND will shop their new deal with better terms. IMO they will refinance MANN GROUP's $71.5M and get additional capital (maybe $100M - $150M) with a decent rate (6% - 7.5%) and a 2025 exp. date. Let's see if my years of experience in corporate bonds are accurate. Nice prediction. You called it... pretty much right on the money!
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Post by ktim on Aug 7, 2019 18:09:50 GMT -5
Of course they were good. Deerfield made LOAN SHARK Money off of MNKD. I don't blame them because MNKD was desperate. And yes DF bent over backwards to accommodate MNKD. There were several times DF could have put MNKD into Default. Now MKND will shop their new deal with better terms. IMO they will refinance MANN GROUP's $71.5M and get additional capital (maybe $100M - $150M) with a decent rate (6% - 7.5%) and a 2025 exp. date. Let's see if my years of experience in corporate bonds are accurate. Nice prediction. You called it... pretty much right on the money! I guess $50M in new working capital is within an order of magnitude of $100 - $150M
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Post by alethea on Aug 7, 2019 18:45:43 GMT -5
Nice prediction. You called it... pretty much right on the money! I guess $50M in new working capital is within an order of magnitude of $100 - $150M I think the new loan is for up to 75M... which is pretty close to the lower end of 100M in my book.
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Post by sportsrancho on Aug 7, 2019 18:50:03 GMT -5
I guess $50M in new working capital is within an order of magnitude of $100 - $150M I think the new loan is for up to 75M... which is pretty close to the lower end of 100M in my book. And then the money from UT. What did Mike say we lowered monthly expenses down to? No dilution No reverse split A year and a half of runway ..?
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Post by ktim on Aug 7, 2019 18:53:55 GMT -5
I guess $50M in new working capital is within an order of magnitude of $100 - $150M I think the new loan is for up to 75M... which is pretty close to the lower end of 100M in my book. $28M of it used to pay down other debt, so $12M in working capital now and potentially $35M over next couple of years IF certain milestones met. Casper has been talking about restructuring and ending up with $100 to $150M in new "working" capital to use now. That would have been phenomenal (or unbelievable, which is why I suspected it would not happen). What we got was good, though.
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Post by ktim on Aug 7, 2019 19:01:11 GMT -5
I think the new loan is for up to 75M... which is pretty close to the lower end of 100M in my book. And then the money from UT. What did Mike say we lowered monthly expenses down to? No dilution No reverse split A year and a half of runway ..? SG&A is down to $16.6M for the quarter which is savings of $5M from same period year ago, and some other costs seemingly being absorbed by the work being supported by UTHR (being done at a very nice profit).
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Post by liane on Aug 7, 2019 19:05:01 GMT -5
I'm moving all these posts here - they were inappropriately posted in the thread about the loan rate on shares.
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Post by matt on Aug 8, 2019 6:46:57 GMT -5
I think the new loan is for up to 75M... which is pretty close to the lower end of 100M in my book. $28M of it used to pay down other debt, so $12M in working capital now and potentially $35M over next couple of years IF certain milestones met. Casper has been talking about restructuring and ending up with $100 to $150M in new "working" capital to use now. That would have been phenomenal (or unbelievable, which is why I suspected it would not happen). What we got was good, though. They pretty much had to pay down some of the other debt because once DF was off the table, those other lenders moved up to a first priority lien on the collateral. Getting a lender to agree to be subordinated again is never free, so the other lenders agreed to be subordinated and extended the loan term in exchange for getting some cash now. Overall the terms are no bargain but not excessive either given where the company is from a development standpoint.
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Post by mnholdem on Aug 8, 2019 7:09:31 GMT -5
From Credit and Security Agreement between MannKind Corporation, MannKind LLC and Apollo Investment (lender) and Midcap Financial (lender & Agent):
6.15(d) Borrower shall own, or be licensed to use or otherwise have the right to use, all Material Intangible Assets subject to Permitted Licenses.
So, essentially MannKind has put up all IP, patents, trademarks etc. as security for a $75 million (minus interest & fees) loan. MannKind is also required obtain permission from the Borrower before being allowed to assign rights to MI assets to any future partner.
So, for any who thought that freeing up assets held by Deerfield who give leverage back to MannKind for partnership negotiations...guess again.
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Post by peppy on Aug 8, 2019 7:12:35 GMT -5
From Credit and Security Agreement between MannKind Corporation, MannKind LLC and Apollo Investment (lender) and Midcap Financial (lender & Agent): 6.15(d) Borrower shall own, or be licensed to use or otherwise have the right to use, all Material Intangible Assets subject to Permitted Licenses. So, essentially MannKind has put up all IP, patents, trademarks etc. as security for a $75 million (minus interest & fees) loan. MannKind is also required obtain permission from the Borrower before being allowed to assign rights to MI assets to any future partner. Same as Deerfield.
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Post by Thundersnow on Aug 8, 2019 7:26:58 GMT -5
From Credit and Security Agreement between MannKind Corporation, MannKind LLC and Apollo Investment (lender) and Midcap Financial (lender & Agent): 6.15(d) Borrower shall own, or be licensed to use or otherwise have the right to use, all Material Intangible Assets subject to Permitted Licenses. So, essentially MannKind has put up all IP, patents, trademarks etc. as security for a $75 million (minus interest & fees) loan. MannKind is also required obtain permission from the Borrower before being allowed to assign rights to MI assets to any future partner. So, for any who thought that freeing up assets held by Deerfield who give leverage back to MannKind for partnership negotiations...guess again. Now unless my 6th grade education is failing me and I'm no lawyer - BUT - WHO IS THE BORROWER?? Isn't MNKD the BORROWER??? I don't think Binder would have stated all restrictions were lifted when Deerfield was paid off. Also I can't imagine MNKD agreeing to the same terms as Deerfield when MNKD is a MUCH STRONGER Company than in 2013 and they borrowed LESS MONEY. NICE TRY!!!
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Post by neil36 on Aug 8, 2019 7:30:50 GMT -5
I read it as a requirement to maintain all of its intellectual property etc during the terms of the loans. In other words, they cannot sell them off to a third party without triggering a material change of circumstance.
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Post by Thundersnow on Aug 8, 2019 7:46:19 GMT -5
I read it as a requirement to maintain all of its intellectual property etc during the terms of the loans. In other words, they cannot sell them off to a third party without triggering a material change of circumstance. If your interpretation is correct that's awesome. That means MNKD will not be selling Afrezza which means they will partner to market Afrezza. The question is WHEN? Are there more housekeeping items they have to do?? For ex. PEDS Approval, Int'l Filings, etc.
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Post by mnholdem on Aug 8, 2019 8:13:05 GMT -5
From Credit and Security Agreement between MannKind Corporation, MannKind LLC and Apollo Investment (lender) and Midcap Financial (lender & Agent): 6.15(d) Borrower shall own, or be licensed to use or otherwise have the right to use, all Material Intangible Assets subject to Permitted Licenses. So, essentially MannKind has put up all IP, patents, trademarks etc. as security for a $75 million (minus interest & fees) loan. MannKind is also required obtain permission from the Borrower before being allowed to assign rights to MI assets to any future partner. So, for any who thought that freeing up assets held by Deerfield who give leverage back to MannKind for partnership negotiations...guess again. Now unless my 6th grade education is failing me and I'm no lawyer - BUT - WHO IS THE BORROWER?? Isn't MNKD the BORROWER??? I don't think Binder would have stated all restrictions were lifted when Deerfield was paid off. Also I can't imagine MNKD agreeing to the same terms as Deerfield when MNKD is a MUCH STRONGER Company than in 2013 and they borrowed LESS MONEY. NICE TRY!!! Holy crap, how did I misinterpret that???!!! Thank you so much for the correction. I must need more coffee before my brain kicks in...I’m used to these agreements using the terms “Borrower” and “Borrowee”.
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