Aerie Pharma Gets $125 Mln Financing Commitment From Deerfield Management

(RTTNews) - Aerie Pharmaceuticals, Inc. (AERI), a clinical-stage pharmaceutical company focused on glaucoma therapies, announced Tuesday that it has received a $125 million financing commitment from its shareholder Deerfield Management Company L.P.

The financing is expected to be funded before the end of September 2014, subject to customary closing conditions.

Aerie said it intends to use the proceeds from this financing for the continued advancement of development activities for its 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 percent per annum until maturity in September of 2021. The notes are convertible at a conversion price representing a 30 percent premium over the closing price of Aerie stock on September 8, 2014, resulting in a conversion price of $24.80 per share.

Vicente Anido, Jr., Chairman and Chief Executive Officer at Aerie, said, "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 Rhopressa and Roclatan, and to commercialize Rhopressa 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. "

MTS Health Partners acted as financial advisor to Aerie for the financing.