MannKind cuts debt by $48.1 million; repays loan, convertibles

By Mary-Katherine Stinson

Lexington, Ky., April 3 – MannKind Corp. has reduced its total debt by about $48.1 million since Dec. 31, most recently by repaying in full all outstanding debt under both its credit and security agreement with MidCap Financial Trust and its convertible promissory note issued to Mann Group LLC, according to a press release.

On April 1, the company paid approximately $31.6 million, including a contractually obligated exit fee of $2.8 million and a prepayment fee of approximately $300,000, to satisfy the loan agreement.

The MidCap loan would have matured on Aug. 1, 2025.

Additionally, on April 2, MannKind repaid the convertible notes issued to Mann Group in exchange for approximately $8.9 million and 1.5 million shares of MannKind’s common stock.

“Repaying the MidCap loan agreement eliminates our most expensive debt going forward and releases our assets from their security interests. In addition, we believe that our stock price is currently undervalued, so we took the opportunity to repay the Mann Group debt through a partial conversion that is expected to reduce future potential dilution by over two million shares,” chief executive officer Michael Castagna said in the press release.

MannKind is a Westlake Village, Calif., company developing and commercializing therapeutic products for patients with endocrine and orphan lung diseases.

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