Aerie greenshoe ups 1.5% convertibles due 2024 to $316.25 million

By Sarah Lizee

Olympia, Wash., Sept. 10 – Initial purchasers for Aerie Pharmaceuticals Inc.’s 1.5% convertible senior notes due 2024 exercised their $41.25 million greenshoe in full on Monday, bringing the size of the issue to $316.25 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced an upsized $275 million of the convertibles after the market close on Wednesday, with a 35% initial conversion premium.

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.

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.

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