New Deal with Deerfield on Convertible Notes due 2019
Apr 19, 2017 5:59:52 GMT -5
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Post by tchalaa on Apr 19, 2017 5:59:52 GMT -5
Form 8-K Filed Apr 19, 2017
On April 18, 2017, MannKind Corporation (the “Company”) and MannKind LLC, the Company’s wholly-owned subsidiary, entered into an Exchange Agreement with Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. (collectively, “Deerfield”) pursuant to which the Company agreed to, among other things,
(i) repay $4 million principal amount under the 8.75% Senior Convertible Notes due 2019 held by Deerfield (the “Tranche B Notes”),
(ii) exchange $1 million principal amount under the Tranche B Notes for 869,565 shares of the Company’s common stock (the “Tranche B Exchange Shares”) and
(iii) exchange $5 million principal amount under the Amended and Restated 9.75% Senior Convertible Notes due 2019 held by Deerfield (the “Tranche 1 Notes”) for 4,347,826 shares of the Company’s common stock (together with the “Tranche B Exchange Shares”, the “Exchange Shares”).
The exchange price for the Exchange Shares is $1.15 per share.
The principal amount being repaid and exchanged under the Tranche B Notes and the principal amount being exchanged under the Tranche 1 Notes represents the principal amount that would have otherwise become due and payable in May 2017 and July 2017 under the Tranche B Notes and Tranche 1 Notes, respectively.
Source: investors.mannkindcorp.com/secfiling.cfm?filingid=1193125-17-127928&CIK=899460
- Recall from: Form 10-K Filed Mar 16,2017 - Page 62
Liquidity and Capital Resources
To date, we have funded our operations through the sale of equity securities and convertible debt securities, borrowings under The Mann Group Loan Arrangement, borrowings under the Facility Agreement with Deerfield, receipt of upfront and milestone payments under the Sanofi License Agreement, and borrowings under the Sanofi Loan Facility.
As of December 31, 2016, we had $152.1 million principal amount of outstanding debt, consisting of:
• $27.6 million principal amount of 2018 notes bearing interest at 5.75% per annum and maturing on August 15, 2018;
• $55.0 million principal amount of 2019 notes bearing interest at 9.75% per annum, $15.0 million of which is due and payable in July 2017, $15.0 million of which is due and payable in July 2018 and $25.0 million of which is due and payable in July and December 2019;
• $20.0 million principal amount of Tranche B notes bearing interest at 8.75% per annum, $5.0 million of which is due and payable in each of May 2017, 2018 and 2019, and $5.0 million of which is due and payable in December 2019;
• and $49.5 million principal amount of indebtedness under The Mann Group Loan Arrangement bearing interest at 5.84% and maturing and due on January 5, 2020.
Source: investors.mannkindcorp.com/secfiling.cfm?filingID=1193125-17-85519&CIK=899460
On April 18, 2017, MannKind Corporation (the “Company”) and MannKind LLC, the Company’s wholly-owned subsidiary, entered into an Exchange Agreement with Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. (collectively, “Deerfield”) pursuant to which the Company agreed to, among other things,
(i) repay $4 million principal amount under the 8.75% Senior Convertible Notes due 2019 held by Deerfield (the “Tranche B Notes”),
(ii) exchange $1 million principal amount under the Tranche B Notes for 869,565 shares of the Company’s common stock (the “Tranche B Exchange Shares”) and
(iii) exchange $5 million principal amount under the Amended and Restated 9.75% Senior Convertible Notes due 2019 held by Deerfield (the “Tranche 1 Notes”) for 4,347,826 shares of the Company’s common stock (together with the “Tranche B Exchange Shares”, the “Exchange Shares”).
The exchange price for the Exchange Shares is $1.15 per share.
The principal amount being repaid and exchanged under the Tranche B Notes and the principal amount being exchanged under the Tranche 1 Notes represents the principal amount that would have otherwise become due and payable in May 2017 and July 2017 under the Tranche B Notes and Tranche 1 Notes, respectively.
Source: investors.mannkindcorp.com/secfiling.cfm?filingid=1193125-17-127928&CIK=899460
- Recall from: Form 10-K Filed Mar 16,2017 - Page 62
Liquidity and Capital Resources
To date, we have funded our operations through the sale of equity securities and convertible debt securities, borrowings under The Mann Group Loan Arrangement, borrowings under the Facility Agreement with Deerfield, receipt of upfront and milestone payments under the Sanofi License Agreement, and borrowings under the Sanofi Loan Facility.
As of December 31, 2016, we had $152.1 million principal amount of outstanding debt, consisting of:
• $27.6 million principal amount of 2018 notes bearing interest at 5.75% per annum and maturing on August 15, 2018;
• $55.0 million principal amount of 2019 notes bearing interest at 9.75% per annum, $15.0 million of which is due and payable in July 2017, $15.0 million of which is due and payable in July 2018 and $25.0 million of which is due and payable in July and December 2019;
• $20.0 million principal amount of Tranche B notes bearing interest at 8.75% per annum, $5.0 million of which is due and payable in each of May 2017, 2018 and 2019, and $5.0 million of which is due and payable in December 2019;
• and $49.5 million principal amount of indebtedness under The Mann Group Loan Arrangement bearing interest at 5.84% and maturing and due on January 5, 2020.
Source: investors.mannkindcorp.com/secfiling.cfm?filingID=1193125-17-85519&CIK=899460
