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MannKind Announces Proposed Offering of $100 Million Senior Convertible Notes

^{Published on 2010-08-16 13:10:35 - Market Wire}
 

VALENCIA, Calif.--([ BUSINESS WIRE ])--MannKind Corporation (Nasdaq:MNKD) today announced that it proposes to offer, subject to market and other conditions, $100 million aggregate principal amount of senior convertible notes due 2015 (the aNotesa) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the aSecurities Acta). MannKind also intends to grant to the initial purchasers of the Notes a 13-day option to purchase up to an additional $15 million aggregate principal amount of the Notes solely to cover over-allotments, if any. MannKind expects to use the net proceeds of the offering to fund the costs of its clinical trials programs and other research and development activities, to expand its manufacturing operations, both on-going and planned, and for general corporate purposes, including working capital.

The Notes will be general unsecured senior obligations of MannKind, will pay interest semi-annually, and will be convertible into shares of MannKinda™s common stock. The interest rate, conversion rate and other terms of the Notes will be determined at the time of pricing of the offering.

The Notes and the shares of MannKinda™s common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities.

Forward-Looking Statements

This press release contains forward-looking statements, including statements related to MannKinda™s proposed offering of the Notes, the anticipated terms of the Notes, the anticipated manner of the offering of the Notes, the over-allotment option related to the offering of the Notes and the anticipated use of proceeds from the offering of the Notes, that involve risks and uncertainties. Words such as aanticipatesa, aintendsa, aplansa, aproposesa, aexpectsa, awilla, and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon MannKinda™s current expectations. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to whether MannKind will offer the Notes or consummate the offering of the Notes on the expected terms, or at all, market and other general economic conditions, whether MannKind will be able to satisfy the conditions required to close any sale of the Notes, the fact that MannKinda™s management will have broad discretion in the use of the proceeds from any sale of the Notes, the progress, timing and results of clinical trials, difficulties or delays in seeking or obtaining regulatory approval, the manufacture of AFREZZA, competition from other pharmaceutical or biotechnology companies, MannKinda™s ability to enter into any collaborations or strategic partnerships, intellectual property matters and stock price volatility. The foregoing list sets forth some, but not all, of the factors that could affect MannKinda™s ability to achieve results described in any forward-looking statements. For additional information about risks and uncertainties MannKind faces and a discussion of MannKinda™s financial statements and footnotes, see documents MannKind files with the Securities and Exchange Commission, including MannKinda™s most recent annual report on Form 10-K and quarterly report on Form 10-Q and other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and MannKind undertakes no obligation and expressly disclaims any duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.