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Post by cjm18 on Jan 12, 2024 11:52:44 GMT -5
investors.mannkindcorp.com/node/17446/pdf“Before December 1, 2025, holders will have the right to convert their notes only upon the occurrence of certain events. 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.” So mannkind could pay cash? Even if the other party prefers shares? But the share price has to be above 6.77 for sometime anyway.
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limo
Researcher
Posts: 82
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Post by limo on Jan 15, 2024 3:30:50 GMT -5
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Post by ryster505 on Jan 16, 2024 13:20:48 GMT -5
Interesting..Emerald Advisors almost completely out? They were super bullish a while back, maybe they ran out of patience? |
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Post by sayhey24 on Jan 17, 2024 11:36:41 GMT -5
investors.mannkindcorp.com/node/17446/pdf“Before December 1, 2025, holders will have the right to convert their notes only upon the occurrence of certain events. 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.” So mannkind could pay cash? Even if the other party prefers shares? But the share price has to be above 6.77 for sometime anyway. Based on what Mike and Steve were saying it seemed they expected to pay cash. Its Mannkind's election. |
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Post by JEvans on Jan 17, 2024 12:22:47 GMT -5
investors.mannkindcorp.com/node/17446/pdf“Before December 1, 2025, holders will have the right to convert their notes only upon the occurrence of certain events. 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.” So mannkind could pay cash? Even if the other party prefers shares? But the share price has to be above 6.77 for sometime anyway. Based on what Mike and Steve were saying it seemed they expected to pay cash. Its Mannkind's election. I'm assuming that a deal can be made with note holders to be paid back sooner for less if they wish to be..... |
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Post by sr71 on Jan 17, 2024 18:38:06 GMT -5
JEvans - I had exactly the same thought earlier today. But since MNKD is banking more interest on the $150 million from Sagard than is accrued on the convertible notes, it may be best to keep the money for now and pay the notes off at maturity . . . in CASH. Another way to look at it is that by waiting, we would be paying back the debt with future "depreciated" dollars, due to inflation. Personally, I'm willing to wait for the Market to wake-up and acknowledge the value and potential of Mannkind, which I believe will be well before the convertible notes come due, perhaps even this year.  |
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Post by Clement on Jan 18, 2024 5:59:55 GMT -5
I see the Batman signal in the sky.
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Post by bthomas55ep on Jan 18, 2024 6:50:21 GMT -5
I see the Batman signal in the sky. Meaning? You think some kind of trouble is brewing and they need some kind of extraordinary help? |
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Post by castlerockchris on Jan 18, 2024 10:23:53 GMT -5
MNKD will pay the debt off when one of two things happens, either the notes come due (maturity) or when the difference on the interest rate earned vs. paid inverts. If you had a $200,000 mortgage with a 3% APR and you knew, on average you can make 9% annually over the life of the loan simply by purchasing an S&P Indexed ETF, why in the world would you ever pay off the loan any faster than required. Sorry, I think Dave Ramsey and all his debt free preaching pals are full of garbage. This is the kind of thinking that keeps a lot of less well off people trapped right where they are.
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Post by standup on Jan 18, 2024 10:38:37 GMT -5
MNKD will pay the debt off when one of two things happens, either the notes come due (maturity) or when the difference on the interest rate earned vs. paid inverts. If you had a $200,000 mortgage with a 3% APR and you knew, on average you can make 9% annually over the life of the loan simply by purchasing an S&P Indexed ETF, why in the world would you ever pay off the loan any faster than required. Sorry, I think Dave Ramsey and all his debt free preaching pals are full of garbage. This is the kind of thinking that keeps a lot of less well off people trapped right where they are. I disagree. The convertible debt is toxic and not subject to a simple interest rate analysis. |
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Post by sr71 on Jan 18, 2024 14:46:11 GMT -5
The convertibles are no longer toxic.
Mannkind actually now has the resources to retire these notes twice over: either with cash (my preference at a much later date), or with shares already designated for such purpose.
But right now keeping the debt is the smart (and most sustainable) move, positioning Mannkind very well to execute on the plan for growth and (further) profitability.
Kudos to the management team for finally putting the company in the best financial position in its history, and creating the robust pipeline prospects for mid to long term growth as well.
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Post by standup on Jan 18, 2024 15:35:21 GMT -5
The convertibles are no longer toxic. Mannkind actually now has the resources to retire these notes twice over: either with cash (my preference at a much later date), or with shares already designated for such purpose. But right now keeping the debt is the smart (and most sustainable) move, positioning Mannkind very well to execute on the plan for growth and (further) profitability. Kudos to the management team for finally putting the company in the best financial position in its history, and creating the robust pipeline prospects for mid to long term growth as well. As long as the convertible holders are free to short with relative impunity I will consider it "toxic". |
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Post by agedhippie on Jan 18, 2024 17:54:28 GMT -5
As long as the convertible holders are free to short with relative impunity I will consider it "toxic". That's simply wrong. MNKD have said they will settle the loan with cash at the end of the term and have the cash on hand so there will be no shares to close a short position. The holders can and may short the stock, but they are doing it at exactly the same risk as any other short. There is definitely not any impunity, relative or otherwise. |
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Post by standup on Jan 18, 2024 20:01:14 GMT -5
As long as the convertible holders are free to short with relative impunity I will consider it "toxic". That's simply wrong. MNKD have said they will settle the loan with cash at the end of the term and have the cash on hand so there will be no shares to close a short position. The holders can and may short the stock, but they are doing it at exactly the same risk as any other short. There is definitely not any impunity, relative or otherwise. Maybe I'm missing something in your logic but the holders have the right to convert to shares given certain circumstances. The decision is not all MNKD's to make.
The holders are able to manage the risk inherent to naked short selling. |
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Post by celo on Jan 18, 2024 20:31:02 GMT -5
That's simply wrong. MNKD have said they will settle the loan with cash at the end of the term and have the cash on hand so there will be no shares to close a short position. The holders can and may short the stock, but they are doing it at exactly the same risk as any other short. There is definitely not any impunity, relative or otherwise. Maybe I'm missing something in your logic but the holders have the right to convert to shares given certain circumstances. The decision is not all MNKD's to make.
The holders are able to manage the risk inherent to naked short selling. MNKD can pay the 200+ million loan beginning March 6th. Long before the date it is possible to convert to shares. MNKD decides the fate of the loan, pay now, later or convert to shares later. |
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