VALENCIA, Calif.--(BUSINESS WIRE)--MannKind Corporation (Nasdaq: MNKD) today announced that it has entered into a previously announced stock lending agreement pursuant to which it will lend 9,000,000 shares of its common stock to Bank of America, N.A. MannKind has also entered into an underwriting agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”), an affiliate of Bank of America, pursuant to which Merrill Lynch will sell the shares at an offering price of $5.55 per share. MannKind will not receive any proceeds from the common stock offering but will receive a nominal one-time lending fee. Bank of America will be required to return the borrowed shares pursuant to the terms of the share lending agreement. Bank of America will use the short position resulting from the loan and sale of the shares of MannKind’s common stock to facilitate the establishment of hedge positions by investors in a concurrent private offering of $100 million aggregate principal amount of MannKind’s Senior Convertible Notes due 2015 (or $110 million if the initial purchasers exercise their overallotment option in full), which is being made only to qualified institutional buyers. The closing of the common stock offering is expected to take place on August 24, 2010.
