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Post by #NoMoreNeedles on Jun 28, 2017 8:03:22 GMT -5
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Post by therealisaching on Jun 28, 2017 8:08:01 GMT -5
Greenhill back in the picture
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Post by yash on Jun 28, 2017 8:09:44 GMT -5
MannKind Draws Remaining Funds under Mann Group Loan Arrangement
VALENCIA, Calif., June 28, 2017 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD), announced today that it has delivered a funding request notification to the Mann Group LLC pursuant to the terms of the Mann Group Loan Arrangement (the "Loan Arrangement") to draw the remaining $30.1 million of availability thereunder. Upon funding, MannKind will concurrently use $10.6 million of the proceeds to capitalize all accrued but unpaid interest under the Loan Arrangement. Under a subordination agreement with Deerfield, the Mann Group previously agreed with Deerfield not to demand or accept any payment under the Loan Arrangement until MannKind's payment obligations to Deerfield have been satisfied in full, except for payments (such as interest payable in-kind) that are permitted under the subordination agreement. After the request is funded, MannKind will (i) receive $19.4 million of cash, (ii) have drawn the full amount available under the Loan Arrangement, and (iii) have paid all accrued interest outstanding thereunder as of June 30, 2017. The outstanding balance under the Loan Arrangement after this transaction will be $79.7 million, which is due on January 5, 2020.
"This advance will meaningfully increase our cash on hand as we continue to explore potential opportunities to enhance our capital structure. We truly appreciate our working relationship with the Mann Group and their continued support of MannKind," said Michael Castagna, Chief Executive Officer of MannKind Corporation. "In addition, we have engaged Greenhill & Co., Inc. as a financial and strategic advisor, a firm that we believe will provide independent advice as I transition into my new role."
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Post by promann on Jun 28, 2017 8:10:19 GMT -5
I wonder how the market will perceive this news today. I can see Spencer's head line but I don't care to say.. |
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Post by #NoMoreNeedles on Jun 28, 2017 8:12:37 GMT -5
I am sure he is already busy re-crunching his numbers  |
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Post by mnkdnewbie on Jun 28, 2017 8:14:02 GMT -5
I think it's a good decision, no dilution and cash for extra 2 months?
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Post by #NoMoreNeedles on Jun 28, 2017 8:17:17 GMT -5
This should make it clear once and for all that there is no AMGEN buyout/partnership looming although the two headquarters are just a few miles from each other!
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Post by boytroy88 on Jun 28, 2017 8:18:24 GMT -5
I think it's a good decision, no dilution and cash for extra 2 months? That but it's also do or die.... |
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Post by silentknight on Jun 28, 2017 8:22:40 GMT -5
It's a double edged sword.
1) They can pay Deerfield without having to dilute through payment with equity.
2) They go deeper into debt with the Mann Group and only buy themselves two months or so before they're back to trying to figure out how to get more money.
I think it only postponed the inevitable dilution or (hopefully) rights offering.
Dealing in months rather than years is not a viable long-term strategy.
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Post by therealisaching on Jun 28, 2017 8:29:58 GMT -5
It's a double edged sword. 1) They can pay Deerfield without having to dilute through payment with equity. 2) They go deeper into debt with the Mann Group and only buy themselves two months or so before they're back to trying to figure out how to get more money. I think it only postponed the inevitable dilution or (hopefully) rights offering. Dealing in months rather than years is not a viable long-term strategy. without an ex-us deal somewhere I agree. The only positive to the delay would be if there is a meaningful trajectory on TRX. We've seen the beginning of the upward move. Hopefully the curve continues & the SP has moved before dilution. |
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Post by akemp3000 on Jun 28, 2017 8:50:35 GMT -5
Yes. The more scripts/revenue climbs, the greater reduction in burn rate and the runway moves further out. Looks like a good time for DTC push  |
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Post by derek2 on Jun 28, 2017 8:54:43 GMT -5
I wonder if Deerfield was advised?
MNKD will require $25M in cash or credit line balance at the end of the quarter, or Deerfield can call the loan immediately.
I suspect Mike is hoping that the Rx trend continues, that "Reversed" gets some good chatter, and that MNKD is in a better position to raise cash in September, before the having to pay the piper (cover the $25M cash position Deerfield covenant) at the end of Q3.
Personally, I like it. All or nothing now. Just give it your best shot instead of the talking and waiting we saw from Matt.
My best wishes to Mike for this approach, but this should be recognized for the hail Mary that it is.
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Post by kbrion77 on Jun 28, 2017 8:55:10 GMT -5
I wonder how the market will perceive this news today. I can see Spencer's head line but I don't care to say.. The company is paying credit card debt with another credit card and is desperate for cash. You can despise him all you want but he's reviewed the cash situation extremely fair in his articles. |
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Post by mnkdfann on Jun 28, 2017 8:57:27 GMT -5
"In addition, we have engaged Greenhill & Co., Inc. as a financial and strategic advisor, a firm that we believe will provide independent advice as I transition into my new role."
From Wikipedia:
Greenhill is an independent, New York based investment bank founded in 1996 by Robert F. Greenhill. It is considered one of the most elite and prestigious firms on Wall Street.
The firm provides advice on mergers, acquisitions, restructurings, financings, and capital raisings to leading corporations, partnerships, institutions and governments across a number of industries. Recent clients include Actavis, Alcoa, Energy Future Holdings, Fluor Corporation, Gannett, GlaxoSmithKline, London Stock Exchange Group, Safeway, Tesco, Teva, and the US Department of Treasury.
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Post by brentie on Jun 28, 2017 9:14:12 GMT -5
In case you're wondering where you heard the name "Greenhill" before... Sanofi and MannKind Announce Global Licensing Agreement for Afrezza® (insulin human) Rapid-Acting Inhaled Insulin "Greenhill & Co. served as exclusive financial advisor to MannKind with respect to this transaction." investors.mannkindcorp.com/releasedetail.cfm?ReleaseID=907499 |
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