By Wendy Van Sickle
Columbus, Ohio, Sept. 4 – Aerie Pharmaceuticals Inc. priced an upsized $275 million of 1.5% convertible senior notes due 2024 after the market close on Wednesday, with a 35% initial conversion premium, according to a news release.
The convertibles were 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 $41.25 million greenshoe and which is expected to price.
The deal was upsized from a planned $250 million, with a $37.5 million greenshoe.
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.
| Issuer: | Aerie Pharmaceuticals Inc.
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| Securities: | Convertible senior notes
|
| Amount: | $275 million
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| Greenshoe: | $41.25 million
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| Maturity: | Oct. 1, 2024
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| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc. and Stifel Nicolaus & Co. Inc.
|
| Coupon: | 1.5%
|
| Conversion premium: | 35%
|
| Conversion price: | $24.98
|
| Conversion rate: | 40.04
|
| Call options: | Non-callable for three years, then at 130% price hurdle
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| Pricing date: | Sept. 4
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| Settlement date: | Sept. 9
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| Distribution: | Rule 144A
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| Talk: | Yield 1% to 1.5% and initial conversion premium of 32.5% to 37.5%
|
| Stock symbol: | Nasdaq: AERI
|
| Stock price: | $18.50 at market close Sept. 4
|
| Market capitalization: | $849.88 million
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