Ironwood Pharmaceuticals, Inc. announced that it has received $175 million in funding from Athyrium Capital Management, LP and other investors
January 03, 2013
Share
Ironwood Pharmaceuticals, Inc. (NasdaqGS:IRWD) announced a private placement of linaclotide pharmasm 11% notes for gross proceeds of $175,000,000 on January 4, 2013. The transaction saw participation from 18 institutional investors including Athyrium Opportunities Fund; a fund managed by Athyrium Capital Management, LP. The notes carry an interest rate of 11% and will mature on or before June 15, 2024. The interest on the notes will be payable on March 15, June 15, September 15, and December 15 of each year, commencing June 15, 2013. Principal of the notes will be payable from and after March 15, 2014. Upon completion of the interest only period, the company will make quarterly payments on the notes equal to greater of 7.5% of net sales of Linzess in the United States for the preceding quarter and accrued and unpaid interest on the notes. As part of the transaction, Morgan Stanley & Co. LLC served as placement agent in the transaction. The company also paid sales commission of $7,015,908 in the transaction. Thomas Draper, Patrick O'Brien, Paul Kinsella, David Saltzman, John Donnelly Adam Collicelli, Amy Olson, Scott Ollivierre and Bryan LaPlant, Josh Lichtenstein, Benjamin Rogers, Gregory Katz and Abigail Hackler, and Christina Fulham of Ropes & Gray LLP served as the legal advisor for the company. Cross-practice team of Ropes & Gray LLP led debt offering. The securities were issued pursuant to Regulation D.
On January 4, 2013, Ironwood Pharmaceuticals, Inc. closed the transaction.
Ironwood Pharmaceuticals, Inc. is a gastrointestinal (GI) healthcare company engaged in advancing the treatment of GI diseases and redefining the standard of care for GI patients. It is engaged in the development of LINZESS (linaclotide) for adults with irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC). Linaclotide is also approved for the treatment of functional constipation in pediatric patients ages 6-17 years old. It is advancing apraglutide, a long-acting synthetic glucagon-like peptide-2 (GLP-2) analog being developed for rare gastrointestinal diseases, including short bowel syndrome with intestinal failure (SBS-IF) as well as several earlier stage assets. It is advancing IW-3300, a GC-C agonist, for the potential treatment of visceral pain conditions, such as interstitial cystitis/bladder pain syndrome (IC/BPS), and endometriosis. It is also developing CNP-104 for the treatment of PBC, a rare autoimmune disease targeting the liver.
IRONWOOD PHARMACEUTICALS, INC. 
