$110 million for 9 million shares. That is $12 a share to borrow. He couldn't issue shares at that price. Only problem is the volume is high enough to crush this company's share value to 2. I dumped my shares today wish I did it at 7, but at least I sold calls against them near the high.
I think the shares will be trading in a month, right? So if this stock goes to 3 I will just buy my stake back. And if they announce a partner before then I will just buy it at 25. Because I know that this company could be making $10/share in 4-5 years.
As mentioned on another thread, besides the banking fees BofA will collect, the buyer of the bonds (BofA/ML?) will have half of their principal returned to them while still collecting interest on the whole $100 million (less borrowing fees MNKD charges for shares.) All "sweetheart deals."