MannKind inks $500M financing agreement with Blackstone
Westlake Village-based MannKind Corporation is receiving some extra help to advance some of its short and long-term growth strategies.
Announced Aug. 6, MannKind, a biotech company focused on inhaled therapeutic products, entered into a financing agreement worth up to $500 million with Blackstone, the world’s largest alternative asset manager, with more than $1 trillion in assets under management.
MannKind CEO Michael Castagna said the financing “significantly increases our operating flexibility and provides us substantial access to non-dilutive capital on favorable terms, complementing our strong cash position.”
He said that the funding will specifically support the expansion of the company’s commercial team as it prepares for the anticipated launch of the pediatric indication for Afrezza, if approved, continued pipeline advancement, potential business development opportunities, and general corporate purposes.
“Partnering with the Blackstone team on this transaction positions us to accelerate our next phase of growth and innovation,” he said.
According to the press release, MannKind will receive $75 million initial term loan at the close of the agreement, with another $125 million in a delayed draw term loan that is available for the next 24 months. The additional $300 million is an uncommitted delayed draw term loan available at the mutual consent of MannKind and Blackstone, the press release read.
The facility matures in August 2030 and does not provide for scheduled amortization payments during the term.
“MannKind has a strong commercial track record, diversified product portfolio, and exceptional management team,” Managing Director at Blackstone Credit & Insurance Jonathan Brayman said.
“This strategic financing provides flexible capital to support MannKind’s growth initiatives while positioning Blackstone as a long-term partner to the company. We believe access to our value creation platform and deep bench of life sciences expertise will support MannKind’s commercialization efforts, as well as its organic and inorganic pipeline.”
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