By Susanna Moon
Chicago, Oct. 23 – MannKind Corp. agreed to issue $23.67 million of new 5.75% convertible senior subordinated notes due 2021 and 973,236 common shares in exchange for $23.67 million of its outstanding 5.75% convertible senior subordinated notes due 2018.
The company entered into separate, privately negotiated exchange agreements with the holders on Monday, according to an 8-K filing with the Securities and Exchange Commission.
The 2021 notes will be convertible into shares of the company’s common stock at a conversion rate of 194.1748 shares per $1,000 principal amount, which is a conversion price of about $5.15 per share.
The company’s stock (Nasdaq: MNKD) closed at $4.25 last Friday.
The 2021 convertibles will be the company’s general, unsecured, senior obligations, except that the 2021 notes will be subordinated to the outstanding notes issued under the company’s facility agreement dated July 1, 2013 with Deerfield Private Design Fund II, LP and Deerfield Private Design International II, LP.
MannKind is a Valencia, Calif., company developing and commercializing therapeutic products for patients with diseases such as diabetes.
Exchange issue
| Issuer: | MannKind Corp.
|
| Issue: | Convertible senior subordinated notes due 2015
|
| Amount: | $23.67 million
|
| Maturity: | Oct. 23, 2021
|
| Coupon: | 5.75%
|
| Conversion premium: | 21.18%
|
| Conversion price: | $5.15 per share
|
| Conversion rate: | 194.1748 shares per $1,000 principal amount
|
| Put option: | At par upon fundamental change
|
| Call option: | Company may force conversion if last reported stock price is at or above 120% of the conversion price for at least 10 out of 20 trading days
|
| Stock symbol: | Nasdaq: MNKD
|
| Stock price: | $4.25 at close on Oct. 20
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
