MannKind amends terms of promissory note, extends borrowing period

By Marisa Wong

Madison, Wis., July 3 - MannKind Corp. amended its promissory note with the Mann Group LLC, on June 27, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment, accrued interest may be paid in-kind and capitalized into new principal indebtedness under the note.

MannKind and the Mann Group also agreed that the cancelled principal amount, resulting from a stock purchase, is to be permanently retired and made unavailable for re-borrowing. According to the filing, MannKind issued shares of its common stock to the Mann Group for a total purchase price of $77.2 million. The shares were paid for by cancelling a principal amount under the promissory note.

The stock purchase was initiated in February and completed on June 27. Following the closing of the transaction and the capitalization of the unpaid interest, the total principal amount outstanding under the note is $218.1 million.

The remaining available amount under the note is $26.9 million. The company can borrow under the amended loan agreement until Dec. 31, extended from June 30.

MannKind is a Valencia, Calif.-based biopharmaceutical company. Mann Group is an entity controlled by MannKind's chief executive officer and principal stockholder, Alfred E. Mann.

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