Aerie Pharmaceuticals to price $250 million five-year convertibles

By Rebecca Melvin

New York, Sept. 3 – Aerie Pharmaceuticals Inc. plans to price $250 million of convertible senior notes due 2024, which were being talked to yield 1% to 1.5% with an initial conversion premium of 32.5% to 37.5%, according to a market source.

BofA Securities Inc., Citigroup Global Markets Inc. and Stifel Nicolaus & Co. Inc. are joint bookrunners for the Rule 144A deal, which has a $37.5 million greenshoe and which is expected to price after the market close on Wednesday.

The notes are non-callable for three years and then provisionally callable at a price hurdle of 130%. There are no puts.

The notes have contingent conversion at a price trigger of 130%.

There is full dividend protection via conversion ratio adjustment and a make-whole adjustment premium in the event of change of control.

Based in Durham, N.C., Aerie Pharmaceuticals develops and commercializes treatments for glaucoma and other eye diseases.

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