MannKind Corporation Prices Upsized $200.0 Million Convertible Senior Notes Offering
MannKind Corporation (Nasdaq: MNKD) announced the pricing of $200 million of 2.50% Convertible Senior Notes due 2026. The offering to qualified institutional buyers is set to close on March 4, 2021. The notes will accrue interest at 2.50% per annum, payable semiannually. The initial conversion price is approximately $5.21 per share, a premium of 30% over the last sale price of $4.01. Net proceeds of approximately $193.8 million will fund working capital, including a Phase 3 clinical trial of Afrezza and other corporate purposes.
- Successful pricing of $200 million in convertible notes, indicating market confidence.
- Net proceeds expected to be approximately $193.8 million for strategic initiatives, including a Phase 3 trial.
- Initial conversion price of $5.21 represents a premium of 30%, suggesting dilution risk for existing shareholders.
- The company may not redeem the notes until March 6, 2024, limiting flexibility.
WESTLAKE VILLAGE, Calif., March 02, 2021 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq: MNKD) today announced the pricing of
The notes will be general unsecured obligations of MannKind and will accrue interest at a rate of
Before December 1, 2025, holders will have the right to convert their notes only upon the occurrence of certain events. From and after December 1, 2025, until the close of business on the business day immediately preceding the maturity date, holders will have the right to convert all or any portion of their notes at their election. 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. The initial conversion rate is 191.8281 shares of common stock per
MannKind may not redeem the notes prior to March 6, 2024. MannKind may redeem for cash all or any portion of the notes (subject to certain limitations), at its option, on or after March 6, 2024 and prior to the 36th scheduled trading day immediately preceding the maturity date, if the last reported sale price of MannKind’s common stock has been at least
If a “fundamental change” (as defined in the indenture for the notes) occurs, then, subject to limited exceptions, holders may require MannKind to repurchase their notes for cash. The repurchase price would be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
MannKind estimates that the net proceeds from the offering will be approximately
The notes and any shares of MannKind’s common stock issuable upon conversion of the notes have not been and will not be registered under the Securities Act, any state securities laws or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.
This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction.
About MannKind Corporation
MannKind Corporation (Nasdaq: MNKD) focuses on the development and commercialization of inhaled therapeutic products for patients with endocrine and orphan lung diseases. MannKind is currently commercializing Afrezza® (insulin human) Inhalation Powder, the Company’s first FDA-approved product and the only inhaled ultra rapid-acting mealtime insulin in the United States, where it is available by prescription from pharmacies nationwide. Afrezza is also available by prescription in Brazil where it is commercialized by the Company’s partner Biomm SA. MannKind is headquartered in Westlake Village, California, and has a state-of-the art manufacturing facility in Danbury, Connecticut. The Company also employs field sales and medical representatives across the U.S.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the anticipated completion and timing of the offering and MannKind’s expected use of proceeds from the offering. Words such as “believes”, “anticipates”, “plans”, “expects”, “intend”, “will”, “goal”, “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon MannKind’s current expectations. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, market conditions, whether MannKind will be able to satisfy closing conditions related to the proposed offering, unanticipated uses of capital, and other risks detailed in MannKind’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent periodic reports on Form 10-Q and current reports on Form 8-K. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and MannKind undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
Company Contact:
818-661-5000
ir@mannkindcorp.com
FAQ
What is the purpose of MannKind's $200 million convertible note offering on March 2, 2021?
What are the terms of the convertible senior notes issued by MannKind?
What is the significance of the 30% premium on MannKind's convertible notes?
When will MannKind's convertible notes mature?