Aerie Pharmaceuticals enters into $100 million delayed-draw term loan

By Sarah Lizee

Olympia, Wash., July 23 – Aerie Pharmaceuticals, Inc. entered into a $100 million senior secured delayed-draw term loan facility on Monday with affiliates of Deerfield Management, LP, according to an 8-K filing with the Securities and Exchange Commission.

Aerie may borrow up to $100 million in one or more borrowings at any time prior to July 23, 2020.

The credit facility matures on July 23, 2024.

Amounts drawn under the facility will bear interest at a rate per annum of 8.625%, will be subject to a drawdown fee of 1.75% and will be subject to required amortization and prepayment premiums, including make whole interest if prepaid on or prior to the second anniversary of the date of the credit agreement.

Fees on undrawn amounts accrue but are not payable until July 23, 2020, and no principal payments will be due on drawn amounts, if any, until July 23, 2020.

The commitment fee is 15 basis points per year.

The company is also required to pay the lenders an exit fee of $1.5 million upon termination of the facility.

The credit facility is available to Aerie for working capital and general corporate purposes.

No amounts were drawn under the facility at closing.

The company said in a press release that it believes it has adequate cash, cash equivalents and investments to support ongoing business operations through and including the commercialization of its advanced-stage product candidate, Roclatan, and currently has no intention to draw on the credit facility.

Aerie is a Durham, N.C.-based clinical-stage pharmaceutical company focused on glaucoma therapies.

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