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Post by tbone on Aug 3, 2015 17:58:22 GMT -5
What are the thoughts of the brainiacs here? Have we converted any of the approx $60 M in debt after 4 of 10 days? I am of the opinion that we have not.
Follow-up questions- What is MannKind's strategy for extinguishing the debt? We are close to half way through the period and no adjusted floor price has been posted. I feel pretty good about that as it seems to say we won't be forced into accepting whatever market forces dictate. So, what then? Is Al in back up position to refinance it? Will MannKind just pay off? Never a dull moment with this one.
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Post by tripoley on Aug 3, 2015 18:21:33 GMT -5
I sent Matt an email about this very thing. Still waiting for a reply of course. I asked if they would adjust the "floor" and what would happen if note holders chose not to convert. I also asked if they had the option to go with the 2018 notes. Also how would shelling out an additional $56.9M affect the cash?
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Post by longstocking on Aug 3, 2015 20:05:04 GMT -5
What are the thoughts of the brainiacs here? Have we converted any of the approx $60 M in debt after 4 of 10 days? I am of the opinion that we have not. Follow-up questions- What is MannKind's strategy for extinguishing the debt? We are close to half way through the period and no adjusted floor price has been posted. I feel pretty good about that as it seems to say we won't be forced into accepting whatever market forces dictate. So, what then? Is Al in back up position to refinance it? Will MannKind just pay off? Never a dull moment with this one. I don't think we'll get the answer to your question until after the 10 days are up. Hopefully at the ER. |
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Post by mannmade on Aug 3, 2015 20:58:39 GMT -5
I was communicating with Baba about this very subject today. So I propose to the Group as follows, per Baba's point to me earlier today: What are the chances Sanofi picks up the debt for some kind of bond or note, etc... The cost would be like a fly n an Elephants arse and could even be done against future milestone payments. Sure would give a clear signal to the market and likely hit the shorts in the shorts... Just a thought...
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Post by Deleted on Aug 3, 2015 22:10:46 GMT -5
The terms of the notes are attractive, if MannKind offered them to the public they would be purchased. Matt are you considering this option?
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Post by trenddiver on Aug 3, 2015 22:20:06 GMT -5
I was communicating with Baba about this very subject today. So I propose to the Group as follows, per Baba's point to me earlier today: What are the chances Sanofi picks up the debt for some kind of bond or note, etc... The cost would be like a fly n an Elephants arse and could even be done against future milestone payments. Sure would give a clear signal to the market and likely hit the shorts in the shorts... Just a thought... Chances - a big fat zero. |
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Post by kc on Aug 3, 2015 22:29:43 GMT -5
I was communicating with Baba about this very subject today. So I propose to the Group as follows, per Baba's point to me earlier today: What are the chances Sanofi picks up the debt for some kind of bond or note, etc... The cost would be like a fly n an Elephants arse and could even be done against future milestone payments. Sure would give a clear signal to the market and likely hit the shorts in the shorts... Just a thought... I was thinking the same thing when I read it was an Average of trading over a certain period of days. Let me add one more point this could have documented in the December 15, 2014 confidential treatment order. Privately Negoiated? Hmmm was that with Sanofi? sets the Avg share price for Sanofi to BUY IN? Just saying that anything and everything must be explored with MannKin. |
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Post by kball on Aug 4, 2015 6:11:39 GMT -5
I was communicating with Baba about this very subject today. So I propose to the Group as follows, per Baba's point to me earlier today: What are the chances Sanofi picks up the debt for some kind of bond or note, etc... The cost would be like a fly n an Elephants arse and could even be done against future milestone payments. Sure would give a clear signal to the market and likely hit the shorts in the shorts... Just a thought... I had wondered of this also...but discount it now as one would think info like that leaks out and would be reflected in a stock price higher than we are currently. No? |
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Post by mnholdem on Aug 4, 2015 8:29:08 GMT -5
Interesting. So tell me, we know that if Sanofi (or any company) ever acquires 5% of MNKD's outstanding shares, it must be reported to the SEC - is there a similar reporting requirement for noteholders? I find myself wondering what if Sanofi was one of the original noteholders and they own, say, several tens of $million of the convertible notes. Am I correct that they wouldn't need to file a 13g (5%-20%) or 13d (+20%) with the SEC until 5 days after their notes are converted into shares, plus any additional shares they buy off the market (at a great price, I might add)?
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Post by babaoriley on Aug 4, 2015 8:39:16 GMT -5
mnholdem, I don't believe there would be any filing required on acquisition of the convertible note. And, of course, while I give this possibility more chance than Trend does, not too much more. It was just a pleasant thought that came to me.
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Post by anderson on Aug 4, 2015 9:07:00 GMT -5
If the funds holding the notes are public they probably can not convert if the floor price is above market price due to their fiduciary responsibility to the fund holders.
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Post by dudley on Aug 4, 2015 9:36:54 GMT -5
It's appearing more and more likely they will go 0 for 10 unless something bumps the stock price over the floor where the holders HAVE to convert. The way I read it is 10% of the notes are eligible for conversion each day then the ability to convert disappears. Hard to be precise with the less-than-clear language. If the note holders WANT shares (and it seems like they would have or they would never have struck this bizarre deal to begin with) all they have to do is buy them on the open market at these orchestrated low prices. Odds are they can work a deal with their friendly market maker to get the shares without having to chase them up. Again, hard be certain of anything.
So MNKD cashes out the notes with no conversions BUT suffers no dilution and gets the 9 million shares back. Thus cash drops $57 million but no more NEW shares are issued. As far as I can tell the 9 million shares coming back are already fully issued and outstanding so there is no reason they can't in turn just sell them in the market to raise cash if they need to. It's not the same as a new secondary where they need to file a prospectus etc. to register and sell a block of NEW shares. So net net this whole exercise gives the noteholders a very sweet exit with bargain shares while not dramatically impacting MNKD. If they wait for the stock price to recover and sell the 9 million shares in the market they might get the full $57 million back and end up with no dilution at all.
Al will always be there as a last resort backstop in my opinion, or as others have speculated maybe SNY gets into the picture.
Again, not saying ANYTHING definite because this is one bizarro agreement but that's how things appear to me. If I'm wrong I'm not going to feel bad because this thing is a major head-spinner.
We'll know for sure in less than 2 weeks then get back to just the "normal" craziness of the stock.
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Post by cjc04 on Aug 4, 2015 9:55:03 GMT -5
IMO... (Like It'd be anything other) I think they're ALL converting.... This is a prearranged deal, which means this is what they wanted.... And MNKD did NOT set the floor price. MNKD set the equation that got TO the floor price, but "they" walked the stock down to where "they" wanted the floor price to be set... SO, I believe "they" are converting now, where "they" wanted to.
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Post by mssciguy on Aug 4, 2015 10:00:42 GMT -5
IMO... (Like It'd be anything other) I think they're ALL converting.... This is a prearranged deal, which means this is what they wanted.... And MNKD did NOT set the floor price. MNKD set the equation that got TO the floor price, but "they" walked the stock down to where "they" wanted the floor price to be set... SO, I believe "they" are converting now, where "they" wanted to. Oh yes, agreed. It was very interesting in pre-market on Nasdaq, price was walked down from high with sixteen perfectly consecutive one penny reductions in price, 100 shares each. And there it just sat. Would not want to be a retail day trader any more. Everything is controlled by "them" The dark pools are indeed dark by design and filled with sharks. |
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Post by kc on Aug 4, 2015 10:05:19 GMT -5
IMO... (Like It'd be anything other) I think they're ALL converting.... This is a prearranged deal, which means this is what they wanted.... And MNKD did NOT set the floor price. MNKD set the equation that got TO the floor price, but "they" walked the stock down to where "they" wanted the floor price to be set... SO, I believe "they" are converting now, where "they" wanted to. The question is who is converting? Makes me wonder if the privately negotiated was with? Who? Personally I think and hope its prelude to a BUY In but than again I am living on fantasy island but can't seem to find Mr. Roarke or Tatto. I do keep running into the evil AF and JC.
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