By Abigail W. Adams
Portland, Me., March 2 – MannKind Corp. priced an upsized $200 million of five-year convertible notes after the market close on Monday at par at the midpoint of talk with a coupon of 2.5% and an initial conversion premium of 30%, according to a company news release.
Price talk was for a coupon of 2.25% to 2.75% and an initial conversion premium of 27.5% to 32.5%, according to a market source.
J.P. Morgan Securities LLC and SVB Leerink LLC were joint bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $30 million.
The initial size of the offering was $150 million with a greenshoe of $22.5 million.
The notes are non-callable until March 6, 2024 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Net proceeds are expected to be $193.8 million or will be $222.9 million if the greenshoe is exercised in full.
Proceeds will be used for general corporate purposes, including funding the phase 3 clinical trial of Afrezza and to further develop products in MannKind’s pipeline, to repay debt and for potential acquisitions or investments.
MannKind is a Westlake Village, Calif.-based biopharmaceutical company.
| Issuer: | MannKind Corp.
|
| Securities: | Convertible senior notes
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| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | March 1, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC and SVB Leerink LLC
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 30%
|
| Conversion price: | $5.21
|
| Conversion rate: | 191.8281
|
| Call options: | Non-callable until March 6, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | March 1
|
| Settlement date: | March 4
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 2.25% to 2.75% and initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: MNKD
|
| Stock price: | $4.01 at market close March 1
|
| Market capitalization: | $991.10 million
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