By LLuvia Mares
New York, Oct. 3 - MannKind Corp. announced it is offering a total of $250 million of stock in direct placements.
The company plans to issue a total of 27,014,686 shares to Alfred E. Mann, the company's chief executive officer and funds affiliated with Legg Mason Capital Management Inc. and Fidelity Management & Research Comp.
MannKind will sell 15,940,489 shares to Mann at $9.41 each, totaling $150 million and 11,074,197 shares to the other investors at $9.03 per share, totaling $100 million. No warrants were attached to the transaction.
The deal is expected to close on Oct. 5.
In addition, the company entered into a loan agreement with Mann to borrow up to $350 million before Jan. 1, 2010.
The company may not borrow more than one advance in any 12-month period and each advance must be at least $50 million. Interest is at one-year Libor plus 300 basis points.
Valencia, Calif.-based MannKind is a biopharmaceutical company specializing on the discovery, development and commercialization of therapeutic products for diseases.
Issuer: MannKind Corp.
Issue: Stock
Amount: $250 million
Shares: 27,014,686
Pricing date: Oct. 1
| Settlement: | Oct. 5
|
| Stock symbol: | MNKD
|
| Stock price: | $9.41 at close Oct. 1
|
|
|
| Sale to Mann
|
| Amount: | $150 million
|
| Shares: | 15,940,489
|
| Price: | $9.41
|
| Warrants: | No
|
| Investors: | Alfred E. Mann
|
|
|
| Sale to investors
|
| Amount: | $100 million
|
| Shares: | 11,074,197
|
| Price: | $9.03
|
| Warrants: | No
|
| Investors: | Legg Mason Capital Management Inc. and Fidelity Management & Research Comp.
|
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