NEW YORK--(BUSINESS WIRE)--Deerfield Management Company announced today it has committed to invest $125 million in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) through senior secured convertible notes. The financing is expected to be funded before the end of September 2014, subject to customary closing conditions. The facility provides Aerie with capital for the continued advancement of development activities for the Company’s clinical-stage product pipeline, general corporate purposes and strategic growth opportunities.
Under the terms of the financing, the notes will be secured and accrue interest at a rate of 1.75% per annum until maturity in September of 2021. The notes are convertible at a conversion price representing a 30% premium over the closing price of Aerie stock on September 8, 2014, resulting in a conversion price of $24.80 per share.
“We believe this level of financing at favorable terms will be significantly beneficial to Aerie. We now have adequate financial resources to complete all of our known clinical requirements for RhopressaTM and RoclatanTM, and to commercialize RhopressaTM later in 2017 if our trials are successful. This financing also provides us with flexibility for potential strategic product in-licenses or acquisitions as we continue to build Aerie into what we believe may become a major ophthalmic pharmaceutical company. We are deeply appreciative of Deerfield’s confidence in Aerie’s product candidates and growth prospects,” commented Vicente Anido, Jr., Ph.D., Chairman and Chief Executive Officer at Aerie.
“We are excited by the opportunity to work with Aerie’s strong management team and to contribute to the advancement of a leading scientific platform in ophthalmology,” commented William Slattery, Partner, Deerfield Management.
About Aerie Pharmaceuticals, Inc.
Aerie is a clinical-stage pharmaceutical company focused on the discovery, development and commercialization of first-in-class glaucoma therapies.
About Deerfield
Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy.
For more information, please visit www.deerfield.com