MannKind Draws Remaining Funds under Mann Group Loan Arrangement
June 29 2017 - 9:00AM
MannKind Corporation (Nasdaq:MNKD) and (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.”
About MannKind Corporation
MannKind Corporation (NASDAQ:MNKD) (TASE:MNKD)
focuses on the discovery, development and commercialization of
therapeutic products for patients with diseases such as
diabetes. MannKind maintains a website
at www.mannkindcorp.com to which MannKind regularly posts
copies of its press releases as well as additional information
about MannKind. Interested persons can subscribe on the MannKind
website to e-mail alerts that are sent automatically when MannKind
issues press releases, files its reports with the Securities and
Exchange Commission or posts certain other information to the
website.
Forward-Looking StatementsThis
press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding MannKind's
ability to directly commercialize pharmaceutical products.
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 the 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, the risks detailed in MannKind's
filings with the Securities and Exchange Commission, including the
Annual Report on Form 10-K for the year ended December 31, 2016 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:
Rose Alinaya
Acting CFO
661-775-5300
ralinaya@mannkindcorp.com
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