LEXICON PHARMACEUTICALS, INC. (LXRX): debt financing — Lexicon secures $100M loan facility from Hercules Capital; $55M funded at closing

LEXICON PHARMACEUTICALS, INC.

Initial $55M tranche drawn at closing to repay existing Oxford Finance loan; second $20M and third $25M tranches available subject to milestones.
Interest rate = prime + 3.10% with 9.85% floor; initial 18-month interest-only period extendable to 30 months upon achieving clinical/regulatory milestones.
Loan matures May 4, 2030; secured by first lien on all assets; minimum cash covenant starts June 1, 2027.
Hercules received warrants to buy 691,823 shares at $1.59 per share; additional warrants up to 566,037 shares upon future tranche draws.
Funds support Lexicon's late-stage cardiometabolic pipeline including sotagliflozin HCM trial and potential regulatory filings.

item 1.01 item 2.03 item 3.02 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 1.0

LEXICON PHARMACEUTICALS, INC. incurred credit facility of up to $100 million in borrowing capacity with Hercules Capital, Inc. and certain of its affiliates at prime rate plus 3.10%, but not less than 9.85% maturing May 2030.

Instrument: credit facility
Principal: up to $100 million in borrowing capacity
Counterparty: Hercules Capital, Inc. and certain of its affiliates
Rate: prime rate plus 3.10%, but not less than 9.85%
Maturity: May 2030
Event: incurrence

Exact text from the filing

On May 4, 2026, Lexicon Pharmaceuticals, Inc. (" Lexicon ") and its subsidiaries entered into a loan and security agreement with Hercules Capital, Inc. and certain of its affiliates (" Hercules ") that provides up to $100 million in borrowing capacity (the " Hercules Term Loans ") available in three tranches, each maturing in May 2030.

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Equity Issuances SEC 8-K Item 3.02/3.03 confidence 0.9

LEXICON PHARMACEUTICALS, INC. issued 691,823 shares of warrant to Hercules Capital, Inc. and certain of its affiliates for $1.59 per share.

Security: warrant
Shares: 691,823 shares
Purchaser: Hercules Capital, Inc. and certain of its affiliates
Consideration: $1.59 per share

Exact text from the filing

shares of its common stock equal to 2% of the aggregate principal amount of the Hercules Term Loans made and funded under the loan and security agreement at an exercise price of $1.59 per share. Concurrent with the funding of the first tranche, Lexicon granted Hercules warrants to purchase 691,823 shares of its common stock. Upon funding of the second and third

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

LEXICON PHARMACEUTICALS, INC. entered into Loan and Security Agreement with Hercules Capital, Inc. and certain of its affiliates valued at up to $100 million (effective 2026-05-04).

Action: entry
Agreement: credit facility
Counterparty: Hercules Capital, Inc. and certain of its affiliates
Value: up to $100 million
Effective: 2026-05-04

Exact text from the filing

On May 4, 2026, Lexicon Pharmaceuticals, Inc. (“ Lexicon ”) and its subsidiaries entered into a loan and security agreement with Hercules Capital, Inc. and certain of its affiliates (“ Hercules ”) that provides up to $100 million in borrowing capacity

View on SEC.gov

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Source: SEC EDGAR

accession 0001062822-26-000094

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