MannKind restructures, exchanges $86 million of debt

New York, March 12 – MannKind Corp. restructured and exchanged a total of $86 million of its debt, according to a news release.

“These transactions further progress our efforts in recapitalizing and restructuring our balance sheet allowing us to focus on investing in the sustained growth of Afrezza,” said chief financial officer Steven Binder in a news release.

Under the transactions, $8.2 million of the promissory note owed to Mann Group was canceled in exchange for the issuance of 3 million shares at the March 9 closing price of $2.72 per share.

The remaining $71.5 million owed under the promissory note was extended by 18 months to July 1, 2021. At Mann Group’s option, the principal amount and any accrued interest may be converted into stock at a price of $4.00 per share.

In addition, MannKind exchanged $5 million of the 8.75% senior secured convertible notes due 2019 under the company’s facility with Deerfield Private Design International II, LP into 1,838,236 shares at the March 9 closing price of $2.72 per share. The $5 million is the amount that would have been due in May 2018 under the notes.

A further $1.3 million of debt under the Deerfield facility was exchanged for 441,618 shares at a conversion price of $2.83 per share under a previously announced exchange and amendment with Deerfield.

Following the transactions, the company owes $45 million principal amount to Deerfield.

MannKind is a Westlake Village, Calif., developer of inhaled therapeutic products for patients with diseases such as diabetes and pulmonary arterial hypertension.

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