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Post by neil36 on Oct 11, 2022 10:33:42 GMT -5
Convertible Note Due March 2026 - $224,670,000
Fixed Rate 2.5%
Conversion Price $5.21 per share
Mid-Cap $39.047 million due August 2025
Libor rate plus 6.25% (current Libor rate is roughly 3.32% equating to 9.57% rate)
Mann Group Convertible $8.829 million due December 2025
Fixed Rate 2.5%
Conversion Price $2.50 per share
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Post by neil36 on Oct 11, 2022 11:55:30 GMT -5
The piece I'm still trying to model and get my head around is the impact on the mountain of cash and short-term investments. Is the value falling with short-term bond prices? Or are they holding to maturity and rolling investments over to significantly higher yields?
Three month treasuries are 3.32% right now. Six-month treasuries are almost 4%. That would mean investments that were generating almost nothing, could now be bringing in over $5 million a year.
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Post by prcgorman2 on Oct 11, 2022 12:12:59 GMT -5
Convertible Note Due March 2026 - $224,670,000 Fixed Rate 2.5%Conversion Price $5.21 per share Mid-Cap $39.047 million due August 2025 Libor rate plus 6.25% (current Libor rate is roughly 3.32% equating to 9.57% rate)Mann Group Convertible $8.829 million due December 2025 Fixed Rate 2.5%Conversion Price $2.50 per share Do you know if these notes are rated investment grade, non-investment grade, or unrated?
I had been looking to see if the bonds (or MNKD) were rated by Moodys, et cetera, when I came across the cbonds site. Your information looks better, and I'm guessing is buried in various fillings with the SEC, so thank you for sharing.
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Post by neil36 on Oct 11, 2022 13:55:43 GMT -5
PCGorman,
If someone comes up with a CUSIP number or a bond rating, please share it here. My searches on Google and Fidelity come up empty.
Neil
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Post by oldfishtowner on Oct 11, 2022 14:40:51 GMT -5
Convertible Note Due March 2026 - $224,670,000 Fixed Rate 2.5%Conversion Price $5.21 per share Mid-Cap $39.047 million due August 2025 Libor rate plus 6.25% (current Libor rate is roughly 3.32% equating to 9.57% rate)Mann Group Convertible $8.829 million due December 2025 Fixed Rate 2.5%Conversion Price $2.50 per share Do you know if these notes are rated investment grade, non-investment grade, or unrated?
I had been looking to see if the bonds (or MNKD) were rated by Moodys, et cetera, when I came across the cbonds site. Your information looks better, and I'm guessing is buried in various fillings with the SEC, so thank you for sharing.
The interest rate on the MidCap note is capped at 8.25%. |
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Post by neil36 on Oct 12, 2022 6:10:54 GMT -5
"The interest rate on the MidCap note is capped at 8.25%."
Good point, which I totally forgot. Binder really did a nice job of restructuring the debt prior to the current interest rate/inflation mess.
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Post by prcgorman2 on Oct 12, 2022 6:50:07 GMT -5
When I was a kid, interest rates were about where they are now. They shot up into the middle to high double-digits in the late 70s and 80s thanks to inflation, taxes, and an abysmal job market, partly due to the end of the Vietnam war spending and offshoring manufacturing and changing from an industrial economy to a consumer economy (says the guy who lived through it but doesn’t have an economics degree). The current economic environment looks, smells, and tastes, like those times and trends. The point is, Mannkind management are smart to be conservative, because that’s a chunk of debt maturing in 2025 and 2026 and who is to say what interest rates will look like then?
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Post by neil36 on Oct 12, 2022 7:05:14 GMT -5
".....because that’s a chunk of debt maturing in 2025 and 2026 and who is to say what interest rates will look like then?"
And that's the beauty of the current debt structure. The two convertible obligations can be paid back in shares and the MidCap facility could be paid down or even paid off. As long as the stock price works its way above $5.21 by the end of 2025, there will be no life-threatening refinancing crisis.
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Post by Thundersnow on Oct 12, 2022 7:39:03 GMT -5
".....because that’s a chunk of debt maturing in 2025 and 2026 and who is to say what interest rates will look like then?"And that's the beauty of the current debt structure. The two convertible obligations can be paid back in shares and the MidCap facility could be paid down or even paid off. As long as the stock price works its way above $5.21 by the end of 2025, there will be no life-threatening refinancing crisis. Thanks for the refresher course Neil but my question is......WHY IS THE STOCK PRICE AT $3.16? |
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Post by prcgorman2 on Oct 12, 2022 9:25:31 GMT -5
".....because that’s a chunk of debt maturing in 2025 and 2026 and who is to say what interest rates will look like then?"And that's the beauty of the current debt structure. The two convertible obligations can be paid back in shares and the MidCap facility could be paid down or even paid off. As long as the stock price works its way above $5.21 by the end of 2025, there will be no life-threatening refinancing crisis. Thanks for the refresher course Neil but my question is......WHY IS THE STOCK PRICE AT $3.16? The SP is around $3 because of the market slide of 20%, needing to see proof of material gain from Tyvaso DPI, and of course an unusually high SIR thanks to the usual suspects and the others piling on in a downward moving price trend (and who can blame them?).
The bigger issue I see in Neil36's response (which I genuinely appreciate along with his other contributions) is "convertible obligations can be paid back in shares". I agree, but the dilution from that would be ugly.
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Post by peppy on Oct 12, 2022 10:19:15 GMT -5
".....because that’s a chunk of debt maturing in 2025 and 2026 and who is to say what interest rates will look like then?"And that's the beauty of the current debt structure. The two convertible obligations can be paid back in shares and the MidCap facility could be paid down or even paid off. As long as the stock price works its way above $5.21 by the end of 2025, there will be no life-threatening refinancing crisis. Thanks for the refresher course Neil but my question is......WHY IS THE STOCK PRICE AT $3.16? Life long learning situation for me. My bent take. Why is the stock price $3.16? My answer Catch 22. As well as Catch and kill. The reason MNKD has survived is Continuing Glucose Monitors. Peaks in 35 mins out of the body is 90 mins for a 4 unit. The blood glucose control is excellent and manageable. Another problem, Afrezza is dosed differently than subq rapid acting insulins, the studies are set up the same instructions for afrezza and subq when their time of action are quite different. $3.16, the revenue and the debt. When medication is non-inferior, the pharmacy purchasing managers may select which medication is covered. Stories on diabetic sites where health insurers require the insured to change insulins, for the pharmacy purchasing mangers contracts. Regarding Catch and Kill, that was a learning situation. Seeking Alpha, Spencer in charge of catch and kill. Secondary to no health insurance coverage comparatively and the Sanofi drop. Now we have nothing but over head resistance. Sales of Novolog Rapid acting insulin.   |
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Post by nxc2 on Oct 12, 2022 10:29:55 GMT -5
Is there a Deerfield milestone payment due at some point? - I believe there maybe 2 left tied to Afrezza gross revenue.
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Post by neil36 on Oct 12, 2022 12:02:59 GMT -5
"WHY IS THE STOCK PRICE AT $3.16?"
Google Merck and Sotatercept
Phase III trial topline results being hailed as a multi-billion dollar blockbuster innovation for PAH
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Post by kippyt on Oct 12, 2022 12:12:06 GMT -5
From what I have read, Sotatercept is meant to be an add-on therapy to current standard of care. Please correct me if I am wrong
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Post by neil36 on Oct 12, 2022 12:19:07 GMT -5
From what I have read, Sotatercept is meant to be an add-on therapy to current standard of care. Please correct me if I am wrong I saw that mentioned also and wondered (like all of us) what it would actually mean if approved and applied in reality. Would it enhance Tyvaso DPI sales by getting better overall results for seriously ill patients? Or would it chip away at market-share and/or margins? But watch how fast Merck gets FDA approval, in contrast to the "fast-track" <<sarcasm>> ordeal that UTHR just went through. |
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