By Kenneth Lim
Boston, Dec. 7 - MannKind Corp. on Wednesday priced $100 million of seven-year convertible senior notes richer than talk, at a coupon of 3.75% and an initial conversion premium of 29%.
The notes were offered at par and talked at a coupon of 3.75% to 4.25% and an initial conversion premium of 22% to 28%.
There is an over-allotment option for a further $15 million.
Merrill Lynch and JP Morgan were the bookrunners of the registered off-the-shelf offering.
There was a concurrent shelf offering of 20 million shares of MannKind's common stock at $17.42 apiece. There is an over-allotment option for a further 3 million shares in the stock offering.
The convertibles are non-callable.
There is full dividend and takeover protection.
MannKind, a drug developer whose lead diabetes treatment is in phase 3 clinical trials, 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, research and development and for general purposes.
| Issuer: | MannKind Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Merrill Lynch and JP Morgan
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Dec. 15, 2013
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 29%
|
| Conversion price: | $22.47
|
| Conversion ratio: | 44.5002
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Price talk: | 3.75%-4.25%, up 22%-28%
|
| Pricing date: | Dec. 6, after the close
|
| Settlement date: | Dec. 12
|
| Distribution: | Registered
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
