MannKind Secures $500 Million Financing for Growth Initiatives
MannKind's Strategic Financing Agreement
MannKind Corporation, a company dedicated to developing inhaled therapeutic products, has recently announced a significant strategic financing agreement with Blackstone. This agreement allows MannKind to access up to $500 million in funding, which will enhance its capital structure and fuel long-term growth without diluting existing shareholder value.
Initial Funding and Usage
As part of the deal, MannKind will receive an initial cash infusion of $75 million upon closing. This funding is expected to bolster various initiatives, including strengthening their commercial team in anticipation of the pediatric indication for Afrezza, a revolutionary treatment for diabetes.
Financial Structure of the Agreement
The financing package consists of a senior secured credit facility with a total available amount of $500 million. In addition to the $75 million given at closing, MannKind has access to a delayed draw term loan of $125 million over the next two years, contingent upon fulfilling standard conditions. Furthermore, up to $300 million can be accessed upon mutual agreement between MannKind and Blackstone.
Accessible Capital and Growth Strategy
The terms of this financing are designed to provide MannKind with flexibility. The facility is expected to bear a variable interest rate calculated based on SOFR, set at an attractive level of 4.75%. This favorable capital access will support all aspects of MannKind's operational strategies, paving the way for potential expansion efforts.
The Vision Behind the Partnership
Michael Castagna, Chief Executive Officer of MannKind Corporation, expressed his enthusiasm about this funding, indicating that it significantly enhances their operational flexibility. He emphasized the crucial role that this collaboration will play in fostering innovation and facilitating the company’s next growth phase.
About MannKind Corporation
MannKind Corporation is on a mission to revolutionize treatment for patients with endocrine and orphan lung diseases. The company leverages cutting-edge technology to develop inhalation-based therapies aimed at addressing serious unmet medical needs. Their flagship product, Afrezza, is a groundbreaking insulin that allows for more effective diabetes management, representing an innovative approach to traditional diabetes treatments.
Company Commitment and Future Goals
MannKind is committed to improving healthcare outcomes through rapid delivery systems that allow medications to reach their targets quickly. With a passionate team dedicated to delivering better health solutions, MannKind is excited to embark on this new journey with Blackstone.
Contact Information
For additional inquiries, MannKind may be reached through the following contacts:
Investor Relations
Ana Kapor
(818) 661-5000
Email: ir@mnkd.com
Media Relations
Christie Iacangelo
(818) 292-3500
Email: media@mnkd.com
For Blackstone:
Thomas Clements
Email: Thomas.Clements@blackstone.com
(646) 482-6088
Frequently Asked Questions
What is the main purpose of the financing agreement?
The financing agreement is intended to enhance MannKind's capital structure and support its long-term growth initiatives without diluting existing shareholder value.
How much funding does MannKind receive at closing?
MannKind will receive $75 million at the closing of the financing agreement.
What types of loans are included in the agreement?
The agreement includes a senior secured credit facility with an initial term loan and delayed draw term loans that serve specific conditions to access additional funds.
What benefits does the financing provide to MannKind?
This financing will provide operational flexibility and support MannKind's continuing efforts in product development and commercialization.
Who is the key partner in this financing deal?
The key partner in this financing deal is Blackstone, a leading alternative asset manager known for its extensive investment capabilities.
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