Benzinga | Dec 1, 2020 08:06AM EST

MannKind And MidCap Amend Credit Facility

* $10 million funded immediately

* $25 million available upon TreT FDA approval

* Interest-only period extended to September 2022

WESTLAKE VILLAGE, Calif., Dec. 01, 2020 (GLOBE NEWSWIRE) -- MannKind Corporation (NASDAQ:MNKD) today announced that it and MidCap Financial Trust, as agent, have entered into an amendment to the credit and security agreement dated August 6, 2019 (the "MidCap Credit Facility").

"We appreciate the unwavering financial support and partnership from MidCap as we progress our three most important business objectives -- growing Afrezza to become the standard of care for mealtime insulin, working with our collaboration partner, United Therapeutics, to move Treprostinil Technosphere (TreT) toward an NDA submission with the FDA, and developing our pipeline," said Michael Castagna, CEO of MannKind.

The amendment to the MidCap Credit Facility provides that: (i) Tranche 2 of $10.0 million is made available to the Company and is scheduled to be funded on December 1, 2020, (ii) Tranche 3 of $25.0 million is available to the Company upon the satisfaction of certain conditions, including FDA approval of TreT, (iii) modifications to the financial covenant relating to trailing twelve month minimum Afrezza Net Revenue requirements, (iv) an additional covenant that requires the marketing of TreT if Tranche 3 is funded, (v) an extension of the interest-only period until September 1, 2022 (vi) the minimum cash covenant is increased to $30.0 million at all times, and (vii) amendments to the prepayment fees.