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Post by lennymnkd on Feb 27, 2021 17:30:44 GMT -5
How is business conducted with other companies mike alluded to if UTHR MERGERS OR BUYS US OUT .
Does uthr become responsible for conducting that business .. would seen to be complicated..
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Post by goyocafe on Feb 27, 2021 17:47:52 GMT -5
How is business conducted with other companies mike alluded to if UTHR MERGERS OR BUYS US OUT . Does uthr become responsible for conducting that business .. would seen to be complicated.. Multiple partnerships in and of itself is a bit of a poison pill. |
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Post by geomean on Feb 27, 2021 18:06:32 GMT -5
If recall serves, the sale-leaseback transaction was described as a bridge until MNKN becomes cash flow positive as well as a source of funds for further investment in the company. Hence, it should not be viewed as a prelude to dilution via stock issuance. Second, sale leasebacks are kind of hybrid financings in the sense that the lender/buyer looks to both the value of the facility plus the value of the stream of lease payments. I did several similar transactions when in private practice. A rough estimate of the current US build cost is about $214 per square foot. Cost reference. Add about 50% to that for tenant finishes done for standard offices and roughly another 25-50% for specialized R&D. Mannkind recently said the entire research and manufacturing facility comprised 328,000 square feet. link So replacement costs and the underlying asset value is likely in the range of $70,000,000 to $120,000,000. The $10,000,000 per annum lease payments would certainly support the purchase price, in as much they described the transaction as with a triple net lender/buyer, meaning that the lessee remains obligated for taxes, insurance, and maintenance. See link
Third, Mannkind is not giving up effective control. These agreements typically cover all of the contingencies everyone is talking about here. In addition to the 4 5-year extension options, there will almost certainly be options to repurchase the property at fair market value, and to expand and to alter it, subject to ordinary approvals, controls and amendments to the lease.
Finally, please note that they said that the NDA for Tre-DPI
includes approval of the manufacturing facility which they said has already been inspected by the FDA. Hence, it will most likely be exceedingly difficult, costly, risky, and time consuming for UTRH to move the manufacturing, even assuming they could (which is probably contra the agreements and the controls Mannkind is required to maintain over it’s IP).
Overall, I am very much in favor of the concept.
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Post by longliner on Feb 27, 2021 18:23:40 GMT -5
BUT, but, but Matt said there was essentially 0 value in Danbury! 0 or 100 Million it's almost the same number, I'm sure he meant well. He sure used a lot of words.  |
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Post by geomean on Feb 27, 2021 18:34:38 GMT -5
Depreciated book value could well be zero inasmuch as the original facility was built in the aughts. Appraised values utilizing a blend of replacement and current market values and deferred maintenance amounts are what these transactions are tied to.
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Post by longliner on Feb 27, 2021 18:36:53 GMT -5
Depreciated book value could well be zero inasmuch as the original facility was built in the aughts. Appraised values utilizing a blend of replacement and current market values and deferred maintenance amounts are what these transactions are tied to. Sure, 100 million in your coffers is 100 million in your coffers regardless of how it's portrayed. I believe the conversation was about how much mannkind could receive following the announcement of the potential for a sale / lease back option. |
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Post by georgethenight2 on Feb 27, 2021 21:52:12 GMT -5
BUT, but, but Matt said there was essentially 0 value in Danbury! 0 or 100 Million it's almost the same number, I'm sure he meant well. He sure used a lot of words. While I dont doubt his ability to read in between the lines, investing in companies is not always a black and white sutuation. I often doubt those who creep and post "timely" extremely polarized arguments. Matt hasnt posted in more 2 months and that smelly hippy dude, what ever became of him? We got cash, pipeline, upgrades, current $13 / quarter cash burn, up and coming royalities. What's not to be positive about? Anyone still hanging here crying wolf is a short in sheeps clothing. The heavy lifting done by MC, all those at MNKD and UTHR will soon reward patient and long term investors will double digits in the short. And if the pipeline is as robust and opportune as Mike says, triple digits couple bless us. |
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Post by lennymnkd on Feb 28, 2021 10:30:17 GMT -5
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Post by akemp3000 on Feb 28, 2021 11:23:17 GMT -5
Kevin's premise seems flawed. Did Mike actually say that funds from the Dansbury plant lease back are going to be used to pay down debt due in three years instead of being used for R & D or Afrezza commercialization? If so, did he say how much would be used for this? To Kevin's point, if true it could beg the question as to why...unless it's so simple that the interest on the existing debt is at a high rate and this plant lease back transaction can eliminate some of it and save money. IMO, it's probably just the math. Frankly, selling and leasing back the plant to reduce long-term debt and clean up the books doesn't really clean up the books. It simply replaces old debt with lower new debt unless of course we find out a potential partner is participating in this transaction which also remains highly doubtful. |
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Post by neil36 on Feb 28, 2021 11:46:02 GMT -5
Binder comments on the earnings call regarding proceeds from the plant sale/leaseback:
“We plan to use the proceeds for general corporate purposes and they partially pay down the [indiscernible] senior secured debt. There is no assurances that we'll be able to sign a definitive agreement on the terms described and finalization is also subject to satisfactory completion of due diligence by the buyer. Before handing the presentation back to Mike.”
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Post by sportsrancho on Feb 28, 2021 13:25:36 GMT -5
Kevin has me blocked for some reason🤣 A recent development.
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Post by celo on Feb 28, 2021 13:37:34 GMT -5
I think the key is most of the "debt" to Midcap doesn't have to be paid back until Sept 2022 and the Mann group debt can be traded in for stock options that are currently in the black and probably will be for a long time.
Not sure what senior secured debt Binder is talking about. Especially, since Mannkind could push so many pipeline possibilities forward with infusions of cash.
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Post by sr71 on Feb 28, 2021 14:25:34 GMT -5
Right now the Danbury plant is held as collateral against the Midcap loans. So it would make sense that Midcap would require that some of the debt be repaid from the sale proceeds to reflect the reduced collateral available.
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Post by peppy on Feb 28, 2021 14:43:43 GMT -5
Right now the Danbury plant is held as collateral against the Midcap loans. So it would make sense that Midcap would require that some of the debt be repaid from the sale proceeds to reflect the reduced collateral available. Bingo. If I recall that debt was paying 6.5 - 7% rule of 72, 7% for 10 years doubles the money. I like Binder, he knows his compounding interest. |
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Post by pat on Feb 28, 2021 15:52:46 GMT -5
BUT, but, but Matt said there was essentially 0 value in Danbury! 0 or 100 Million it's almost the same number, I'm sure he meant well. He sure used a lot of words. Lol. Admittedly I only understood about half of what that high powered pharmaceutical executive was saying most of the time. But then I might be blinded by membership in the MNKD cult. 😂. Guess I’ll go back to sleep (with my 2.40 cost basis). |
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