Deerfield has bought $40 million of convertible notes in a second tranche of debt financing with MannKind.
MannKind announced that, pursuant to a Facility Agreement dated July 1, 2013 between Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. and MannKind, the conditions that obligate Deerfield to purchase the second $40 million tranche of 9.75% senior secured convertible notes have now been satisfied as part of the financing round.
The second tranche of Convertible Notes in the financing round was subject to the achievement of Phase 3 data from studies 171 and 175 that met the primary efficacy endpoints of these studies and did not show any adverse safety issue that would reasonably be expected to prevent approval of AFREZZA.
The Facility Agreement provides that Deerfield is obligated to purchase up to four equal tranches of Convertible Notes for total gross proceeds of up to $160 million in financing.
The closing of the second financing tranche is expected to occur no later than September 6, 2013.
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