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Post by geomean on Mar 2, 2021 5:43:41 GMT -5
I did further research this am and found www.investopedia.com/terms/s/senior-convertible-note.asp (Well worth reading) I then Googled “ convertible senior notes intend to offer” in order to learn more about current practices. I was surprised to learn that such offerings are exceedingly popular right now. For example Enphase, Beyond Meat, Marriott, Docusign, Peleton, Microstrategy, Ceridian, Haemonics, Twitter, Cable One and Expedia in the last month have announced their intent to offer these notes. The other thing I learned was that their announcement forms were almost verbatim copies of Mannkind’s announcement except for the total amount. None included any other definitive terms, which I was highly critical about yesterday. I then realized how little I knew about Senior Convertible Notes offerings. I then decided to Google “convertible senior notes pricing” in order to find out whether there was a typical format or templates for these beasts. Quite frankly I was amazed to discover my small sampling reflected they are currently being sold with no or little interest due and various conversion premiums over recent stock price or future valuation formulas that took into account future appreciation. Given the tone of my comments and of many others, I must admit I should have investigated further before speaking. I look forward to learning more about these creatures as well as the specific terms Mannkind might ultimately secure. Bottom line, I apologize for my (and am ashamed I made) uninformed comments. |
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Post by derekewhitlock on Mar 2, 2021 5:49:45 GMT -5
Geomean, Kudos to your honesty and forthright nature. Your insights and analysis are always appreciated.
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Post by liane on Mar 2, 2021 5:50:44 GMT -5
geomean - Thank you for your efforts. I don't have time to look it up right now; maybe later. But I have to think our gut-wrenching drop was way, way overdone. If both the lease-back and the notes go through, we have an actual war chest to get something done. And while I would like to see MNKD own its facility, it's far better to tap that equity and possibly buy it back in the future when we are in a better position.
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Post by pat on Mar 2, 2021 7:19:16 GMT -5
I did further research this am and found www.investopedia.com/terms/s/senior-convertible-note.asp (Well worth reading) I then Googled “ convertible senior notes intend to offer” in order to learn more about current practices. I was surprised to learn that such offerings are exceedingly popular right now. For example Enphase, Beyond Meat, Marriott, Docusign, Peleton, Microstrategy, Ceridian, Haemonics, Twitter, Cable One and Expedia in the last month have announced their intent to offer these notes. The other thing I learned was that their announcement forms were almost verbatim copies of Mannkind’s announcement except for the total amount. None included any other definitive terms, which I was highly critical about yesterday. I then realized how little I knew about Senior Convertible Notes offerings. I then decided to Google “convertible senior notes pricing” in order to find out whether there was a typical format or templates for these beasts. Quite frankly I was amazed to discover my small sampling reflected they are currently being sold with no or little interest due and various conversion premiums over recent stock price or future valuation formulas that took into account future appreciation. Given the tone of my comments and of many others, I must admit I should have investigated further before speaking. I look forward to learning more about these creatures as well as the specific terms Mannkind might ultimately secure. Bottom line, I apologize for my (and am ashamed I made) uninformed comments. I didn’t take your comments as overly negative. If it helps, companies of all stripes and sizes have raised a record amount of debt the past year. The Federal Reserve cut its overnight target to 0 at the start of covid. They also started heavy manipulation of longer rates, dropping them to ridiculously low levels. We’re not nominally negative like Europe, but in real terms likely are. New issuance of all debt by all things has exploded. The 30 year mortgage rate under 3! MNKD is paying 2.5% on a 5 yr bond. Albeit a convert. A spec biotech company. Crazy times. MNKD has many revenue opportunities and this money should help bring them online that much quicker. |
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Post by letitride on Mar 2, 2021 7:39:33 GMT -5
Geoman dont sweat it, if it was negative in nature I would have assumed you were short pretending to be long. But even I when thinking something negative about Mannkind question if I am actually short pretending to be long, and buy more shares to make amends.
Lets Go!
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Post by celo on Sept 19, 2024 17:09:49 GMT -5
These notes are quite complicated and have a long history that seems to be taking a turn. After the announcement of the notes on March 1st, a blood bath for the stock ensued. Started at 5.25, (touched 6.25 the day before) went as low at 3.15 and ended at 4. There began the handle of the cup that we have been on until the last month when we have broken out. 3.5 years of manipulation through shorting to keep the stock range bound. Why give up now? One of the reasons, is the date for redemption has passed, allowing the bond holders to move on. Maybe they maxed out their shorting capabilities and the stock momentum is too much. I added the last paragraph as there are more covenants (so many). This one states the share price must be 5.21 when called. I believe the stock has to close above the conversion price on those 20 days. If Mannkind chooses to redeem, they must redeem all or leave at least 75 million unpaid. The Company may not redeem the Notes prior to March 6, 2024. The Company may redeem for cash all or any portion of the Notes, at its option, on or after March 6, 2024 and prior to the 36th scheduled trading day immediately preceding the maturity date (December 1, 2025), if the last reported sale price of Common Stock has been at least 130% of the conversion price (6.76) for the Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company elects to redeem less than all of the outstanding Notes, at least. $75.0 million aggregate principal amount of Notes must be outstanding and not subject to redemption as of the relevant redemption notice date. No sinking fund is provided for the Notes. investors.mannkindcorp.com/static-files/16d0a63e-ba1d-44c9-a635-d28eb0b0d558 |
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Post by celo on Sept 19, 2024 17:16:52 GMT -5
I mean now (if all the covenants are met) they could convert, receive shares at 5.21 price and sell at 6.76. Nice profit. I'd like Mannkind to pay in cash. I believe that wouldn't be as fun for the note holders. The last sentence adds proof to that as it states no sinking fund. Can't develop a little cash kitty to pay it off.
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Post by uvula on Sept 19, 2024 18:02:00 GMT -5
Got spooked for a second when I saw the thread title.
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Post by liane on Sept 19, 2024 18:06:36 GMT -5
Got spooked for a second when I saw the thread title. Me too! |
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Post by celo on Sept 19, 2024 18:08:35 GMT -5
Got spooked for a second when I saw the thread title. HA! should be. March 1st wasn't a pretty day and I have learned something over the last few years. Bond holders are tough SOBs |
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Post by BD on Sept 19, 2024 18:11:00 GMT -5
Got spooked for a second when I saw the thread title. Me too! Me three. |
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Post by mayday on Sept 20, 2024 7:56:13 GMT -5
These notes are quite complicated and have a long history that seems to be taking a turn. After the announcement of the notes on March 1st, a blood bath for the stock ensued. Started at 5.25, (touched 6.25 the day before) went as low at 3.15 and ended at 4. There began the handle of the cup that we have been on until the last month when we have broken out. 3.5 years of manipulation through shorting to keep the stock range bound. Why give up now? One of the reasons, is the date for redemption has passed, allowing the bond holders to move on. Maybe they maxed out their shorting capabilities and the stock momentum is too much. I added the last paragraph as there are more covenants (so many). This one states the share price must be 5.21 when called. I believe the stock has to close above the conversion price on those 20 days. If Mannkind chooses to redeem, they must redeem all or leave at least 75 million unpaid. The Company may not redeem the Notes prior to March 6, 2024. The Company may redeem for cash all or any portion of the Notes, at its option, on or after March 6, 2024 and prior to the 36th scheduled trading day immediately preceding the maturity date (December 1, 2025), if the last reported sale price of Common Stock has been at least 130% of the conversion price (6.76) for the Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company elects to redeem less than all of the outstanding Notes, at least. $75.0 million aggregate principal amount of Notes must be outstanding and not subject to redemption as of the relevant redemption notice date. No sinking fund is provided for the Notes. investors.mannkindcorp.com/static-files/16d0a63e-ba1d-44c9-a635-d28eb0b0d558And I think, this all has to happen on a leap year... |
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Post by radgray68 on Sept 20, 2024 11:56:10 GMT -5
Had to look up what a sinking fund is. Not sure at all but it sounds like the sinking fund is something like the minimum balance required on the old Deerfield notes. Whatever it is, we didn’t need it for this debt but by selling the 1% we have sort of established one.
Debt free in 17 months? Can it be?
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Post by Thundersnow on Sept 20, 2024 13:22:15 GMT -5
Had to look up what a sinking fund is. Not sure at all but it sounds like the sinking fund is something like the minimum balance required on the old Deerfield notes. Whatever it is, we didn’t need it for this debt but by selling the 1% we have sort of established one. Debt free in 17 months? Can it be? I don't think MNKD wants to be DEBT FREE. I think they will refinance the debt. Rates will be lower by then and being debt free opens them up to a Take Over. A medium to slightly large debt load can be seen as a poison pill. |
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Post by agedhippie on Sept 24, 2024 9:58:19 GMT -5
There is good debt and bad debt. Good debt is money you borrow to expand the business faster than you can do organically. If you can have three drugs in the pipeline then taking on debt so you can add another couple that look promising is seen as a good thing. You are reducing your time to market and will be expanding your revenue. The share price grows in anticipation.
Bad debt is money you borrow from wherever you can find it and hand over anything they ask for, MNKD has some prize example of this. Basically you are trying to keep the lights on and the market never rewards that, it treats it as a red flag.
Who you borrow from, what your credit rating is, and the story decide what happens to your share price. Borrowing establishes your credit rating, repaying increases your credit rating and lets you borrow more and cheaper so you can earn more. Rinse, repeat.
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