MannKind Renegotiates Near-Term Maturities with Deerfield
June 29 2017 - 9:26AM
MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) and affiliates of
Deerfield Management Company L.P. (“Deerfield”) have entered into
an exchange and third amendment to their facility agreement (the
“Facility Agreement”), pursuant to which MannKind’s $10 million
principal maturity previously due on July 18, 2017 will be extended
to October 31, 2017, subject to certain conditions, the existing
minimum liquidity covenant is reduced as fully described below, and
Deerfield will exchange $5 million of the Amended and Restated
9.75% Senior Convertible Notes due December 2019 (the “Tranche 4
Notes”) for 3,584,230 shares of MannKind’s common stock (the
“Exchange Shares”). The exchange price for the Exchange
Shares is $1.395 per share. The principal amount being repaid
and exchanged under the Tranche 4 Notes represents the principal
amount that would have otherwise become due and payable in December
2019.
Pursuant to the terms of the exchange and
amendment agreement, Deerfield has agreed to extend its existing
$10 million principal maturity from July 18, 2017 to August 31,
2017 and, subject to certain conditions on that date, further
extend it to October 31, 2017. These conditions include that
MannKind has not experienced a Material Adverse Event or an Event
of Default (as such terms are defined in the Facility Agreement),
that MannKind has received approximately $19.4 million of proceeds
from the Loan Arrangement between MannKind and The Mann Group LLC,
and that the Company has at least $10 million in Cash and Cash
Equivalents (as such terms are defined in the Facility
Agreement). Subject to these conditions, Deerfield has also
agreed to amend the terms of the minimum liquidity covenant under
the Facility Agreement such that, on the last day of each month
through October 31 and on December 31, 2017, MannKind must maintain
at least $10 million of Cash and Cash Equivalents (instead of $25
million).
Michael Castagna, MannKind’s Chief Executive
Officer commented, “The extension of the July 2017 principal
payment to Deerfield and the amendment of the Facility Agreement
affords us flexibility and time to explore additional measures to
strengthen our financial position. Just as with the Mann
Group and its recently announced capital infusion, we appreciate
the cooperation and support of Deerfield at this exciting time for
MannKind.”
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 the
completion of the exchange of the Tranche 4 Notes for Exchange
Shares. 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 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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