MannKind Corp. has restructured its debt, reducing its outstanding principal by $14.5 million through equity swaps, the company announced Monday.
The Westlake Village company, which makes the Afrezza brand of inhalable insulin, said $8.2 million in debt was converted to equity with Mann Group’s purchase of 3 million shares of stock at a price of $2.72 a share. The shares were issued in a private placement.
Similarly, the company has exchanged $5 million in debt due in May to Deerfield Private Design Fund II for 1.38 million shares, also priced at $2.72 a share. Finally, in another deal, MannKind swapped $1.3 million in principal for 441,618 shares purchased by Deerfield at the same price.
“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,” MannKind Chief Financial Officer Steven Binder said in a statement.
MannKind also extended the maturity date for the remaining principal of $71.5 million owed to Mann Group. Under the new agreement, the money is due in July 2021, with principal and any accrued and unpaid interest converted to common stock, at the option of the Mann Group, at a conversion price of $4 a share.
Shares of MannKind (MNKD) closed Monday down 11 cents, or 4 percent, to $2.61 on the Nasdaq.