MannKind to price $100 million seven-year convertibles, talked at 3.75%-4.25%, up 22%-28%

By Kenneth Lim

Boston, Nov. 27 - MannKind Corp. plans to price $100 million of seven-year convertible senior notes on Dec. 6, talked at a coupon of 3.75% to 4.25% and an initial conversion premium of 22% to 28%.

The convertibles will be offered at par.

There is an over-allotment option for a further $15 million.

Merrill Lynch and JP Morgan are the bookrunners of the registered off-the-shelf offering.

There will be a concurrent shelf offering of 17.5 million shares of MannKind's common stock, which is also run by Merrill Lynch and JP Morgan.

The convertibles will be non-callable.

There will be full dividend and takeover protection.

MannKind, a drug developer whose lead diabetes treatment is in phase 3 clinical trials, earlier in November filed a registration statement to sell up to $500 million of securities. The proceeds of the offerings were earmarked for clinical trial costs, for research and development and for general purposes.

MannKind also announced Monday that it has received approval to begin early stage clinical trials for an experimental cancer treatment.

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