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Aerie, Deerfield reach $125 million debt financing agreement

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Aerie Pharmaceuticals announced it has received a $125 million financing commitment from Deerfield Management Company that is expected to be funded before the end of the month, subject to customary closing conditions.

With the financing provided by Deerfield, a current Aerie shareholder, the company plans to continue the advancement of development activities for its clinical-stage product pipeline, general corporate purposes and strategic growth opportunities, according to a press release from Aerie.

The $125 million convertible notes will be secured and accrue interest at a rate of 1.75% annually until September 2021, when maturity is reached. The notes will be convertible at a price of $24.80 per share, representing a 30% premium over the closing price of Aerie stock on Sept. 8, according to the release.

“We now have adequate financing 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,” Vicente Anido, Jr., PhD, chairman and CEO of Aerie, said in the release.