Viridian Therapeutics details $75 million loan with Hercules

By Rebecca Melvin

Concord, N.H., April 5 – Viridian Therapeutics Inc. entered into a debt financing agreement with Hercules Capital, Inc. for up to $75 million, according to an 8-K filed with the Securities and Exchange Commission.

Interest, provided in the filing on Tuesday, will be at the greater of the prime rate plus 420 basis points, or 7.45%; provided that the interest rate shall not exceed a per annum rate of 8.95%.

The term loan matures on Oct. 1, 2026.

Previously reported, the company drew an initial $5 million at closing. An additional $20 million is available at Viridian’s request through June 15, 2023, with an additional $25 million available upon the company’s achievement of certain milestones, and the remaining $25 million available subject to final lender approval.

The loans are secured by certain assets of the borrower, including substantially all of its assets, but excluding intellectual property.

The company may prepay the term loan in whole at its option, subject to a prepayment charge on the amount prepaid equal to 3% in the first 12 months following the closing date, 2% on or after 12 months but prior to 24 months following the closing date, 1% on or after 24 months but prior to 36 months following the closing date and 0% thereafter.

Upon full repayment, the company is obligated to pay an end-of-term charge equal to 6% of the principal amount of the term loan actually borrowed.

Proceeds will be used for working capital and general corporate purposes.

The biotechnology company is based in Waltham, Mass.

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