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Post by sla55 on Mar 1, 2021 7:19:24 GMT -5
investors.mannkindcorp.com/news-releases/news-release-details/mannkind-corporation-announces-proposed-private-placementWESTLAKE VILLAGE, Calif., March 01, 2021 (GLOBE NEWSWIRE) -- MannKind Corporation (NASDAQ:MNKD) today announced that it intends to offer, subject to market conditions and other factors, $150.0 million aggregate principal amount of Convertible Senior Notes due 2026 (the "notes") in a private placement (the "offering") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). MannKind also intends to grant the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $22.5 million aggregate principal amount of notes. The notes will be general unsecured obligations of MannKind and will accrue interest payable semiannually in arrears. Upon conversion, MannKind will pay or deliver, as the case may be, cash, shares of MannKind’s common stock or a combination of cash and shares of MannKind’s common stock, at its election. The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the offering. MannKind intends to use the net proceeds from this offering for working capital and other general corporate purposes, including a Phase 3 clinical trial of Afrezza in pediatric subjects and further development of product candidates in MannKind’s pipeline. MannKind may use a portion of the proceeds from this offering to pay down a portion of existing debt or for acquisitions or strategic investments in complementary businesses or technologies, although MannKind does not currently have any plans for any such debt repayment, acquisitions or investments. The notes and any shares of MannKind’s common stock issuable upon conversion of the notes have not been and will not be registered under the Securities Act, any state securities laws or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction.
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Post by neil36 on Mar 1, 2021 7:39:05 GMT -5
$100 million from the plant sale/leaseback
$150 million plus from a note offering with the stated intent of general operations and funding the pediatric phase 3 trials and development of other product candidates
As the one analyst remarked on the call: “Suddenly, you really have a lot going on”
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Post by liane on Mar 1, 2021 7:40:30 GMT -5
As best I can tell - filling the war chest.
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Post by liane on Mar 1, 2021 7:43:53 GMT -5
Up in premarket - $5.95
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Post by bthomas55ep on Mar 1, 2021 7:48:28 GMT -5
Just wondering if the plant buyer decided to go in another direction and this is the cash alternative? Any thoughts?
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Post by winner on Mar 1, 2021 7:51:59 GMT -5
When will it be known at what price the equity shares will be valued at to compensate others to acquire their notes?
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Post by peppy on Mar 1, 2021 7:54:09 GMT -5
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Post by pat on Mar 1, 2021 7:58:32 GMT -5
investors.mannkindcorp.com/news-releases/news-release-details/mannkind-corporation-announces-proposed-private-placementWESTLAKE VILLAGE, Calif., March 01, 2021 (GLOBE NEWSWIRE) -- MannKind Corporation (NASDAQ:MNKD) today announced that it intends to offer, subject to market conditions and other factors, $150.0 million aggregate principal amount of Convertible Senior Notes due 2026 (the "notes") in a private placement (the "offering") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). MannKind also intends to grant the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $22.5 million aggregate principal amount of notes. The notes will be general unsecured obligations of MannKind and will accrue interest payable semiannually in arrears. Upon conversion, MannKind will pay or deliver, as the case may be, cash, shares of MannKind’s common stock or a combination of cash and shares of MannKind’s common stock, at its election. The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the offering. MannKind intends to use the net proceeds from this offering for working capital and other general corporate purposes, including a Phase 3 clinical trial of Afrezza in pediatric subjects and further development of product candidates in MannKind’s pipeline. MannKind may use a portion of the proceeds from this offering to pay down a portion of existing debt or for acquisitions or strategic investments in complementary businesses or technologies, although MannKind does not currently have any plans for any such debt repayment, acquisitions or investments. The notes and any shares of MannKind’s common stock issuable upon conversion of the notes have not been and will not be registered under the Securities Act, any state securities laws or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction. If it helps. a convertible bond is a coupon bond plus a call option. The addition of a call option potentially makes the fixed rate of the bond ‘higher’ in the sense the investor will participate in the growth of the equity. The convertible bonds DO NOT establish a ceiling on the stock price for the duration of the bond, although I imagine we will hear they do. IMHO this is fantastic and if anyone tells you differently, really take the time to understand what they are (or aren’t) saying. And yes, it is dilutive as the call option can be exercised for treasury stock. But again, look what stage of growth the company is in. |
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Post by falconquest on Mar 1, 2021 8:17:39 GMT -5
investors.mannkindcorp.com/news-releases/news-release-details/mannkind-corporation-announces-proposed-private-placementWESTLAKE VILLAGE, Calif., March 01, 2021 (GLOBE NEWSWIRE) -- MannKind Corporation (NASDAQ:MNKD) today announced that it intends to offer, subject to market conditions and other factors, $150.0 million aggregate principal amount of Convertible Senior Notes due 2026 (the "notes") in a private placement (the "offering") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). MannKind also intends to grant the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $22.5 million aggregate principal amount of notes. The notes will be general unsecured obligations of MannKind and will accrue interest payable semiannually in arrears. Upon conversion, MannKind will pay or deliver, as the case may be, cash, shares of MannKind’s common stock or a combination of cash and shares of MannKind’s common stock, at its election. The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the offering. MannKind intends to use the net proceeds from this offering for working capital and other general corporate purposes, including a Phase 3 clinical trial of Afrezza in pediatric subjects and further development of product candidates in MannKind’s pipeline. MannKind may use a portion of the proceeds from this offering to pay down a portion of existing debt or for acquisitions or strategic investments in complementary businesses or technologies, although MannKind does not currently have any plans for any such debt repayment, acquisitions or investments. The notes and any shares of MannKind’s common stock issuable upon conversion of the notes have not been and will not be registered under the Securities Act, any state securities laws or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction. If it helps. a convertible bond is a coupon bond plus a call option. The addition of a call option potentially makes the fixed rate of the bond ‘higher’ in the sense the investor will participate in the growth of the equity. The convertible bonds DO NOT establish a ceiling on the stock price for the duration of the bond, although I imagine we will hear they do. IMHO this is fantastic and if anyone tells you differently, really take the time to understand what they are (or aren’t) saying. And yes, it is dilutive as the call option can be exercised for treasury stock. But again, look what stage of growth the company is in. Thank you for clarifying that. I was about to make this point. |
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Post by winner on Mar 1, 2021 8:29:46 GMT -5
Thanks Pat. Looking forward to the coming weeks.....
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Post by pat on Mar 1, 2021 8:44:56 GMT -5
One more thing - Not sure who here actually follows the fixed income market but the 10 year treasury yield has run up some 40bps the last 5 weeks. This has caused a bit of havoc in the bond markets as real money investors sit and watch what unfolds. It’s impacted investment grade pricing more than high yield, which is certainly where MNKD sits. But I imagine they’ve been shopping this issuance for some time and have the QIB’s lined up to buy it. Anyway, just trying to help. I know nothing more than anyone else here.
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Post by pat on Mar 1, 2021 8:48:01 GMT -5
If it helps. a convertible bond is a coupon bond plus a call option. The addition of a call option potentially makes the fixed rate of the bond ‘higher’ in the sense the investor will participate in the growth of the equity. The convertible bonds DO NOT establish a ceiling on the stock price for the duration of the bond, although I imagine we will hear they do. IMHO this is fantastic and if anyone tells you differently, really take the time to understand what they are (or aren’t) saying. And yes, it is dilutive as the call option can be exercised for treasury stock. But again, look what stage of growth the company is in. Thank you for clarifying that. I was about to make this point. I would expect nothing less from you Mr Quest. |
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Post by celo on Mar 1, 2021 9:19:11 GMT -5
They didn't have to pay off Mid-cap first to allow for the ability to sell the plant, correct?
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Post by boca1girl on Mar 1, 2021 9:48:45 GMT -5
My question is why they would “pre-announce” this offering and let the stock price drift down 10%?
Why wouldn’t they just announce it when they could disclose the terms and had the investors locked in?
Is there an SEC requirement to announce intentions?
I guess I have the same question regarding the sale/lease back of the plant.
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Post by factspls88 on Mar 1, 2021 9:49:30 GMT -5
Here we go again
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