bluebird bio, Inc.: debt financing — bluebird bio secures up to $175M loan facility from Hercules Capital; $75M funded at close

bluebird bio, Inc.

Initial $75M term loan funded; additional tranches of $25M, $25M, and $50M available subject to milestones.
Interest rate: Prime Rate + 1.45% cash (floor 9.95%) plus 2.45% paid-in-kind; interest-only until April 2027/2028.
Warrants issued for 5% of each tranche (initially $3.75M worth) with 7-year term, exercisable at VWAP.
Financial covenants include Qualified Cash >= 40% of outstanding loans and product revenue test starting Q3 2024.
Product revenue covenant tied to LYFGENIA, ZYNTEGLO, SKYSONA sales; can be waived under certain cash or market cap conditions.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

bluebird bio, Inc. incurred term loan of $75.0 million with Hercules Capital, Inc. (as administrative agent) at Prime Rate plus 1.45% or 9.95%, plus 2.45% paid-in-kind maturing April 1, 2029.

Instrument: term loan
Principal: $75.0 million
Counterparty: Hercules Capital, Inc. (as administrative agent)
Rate: Prime Rate plus 1.45% or 9.95%, plus 2.45% paid-in-kind
Maturity: April 1, 2029
Event: incurrence

Exact text from the filing

On March 15, 2024, bluebird bio, Inc. (the “Company”) entered into a Loan and Security Agreement (the “LSA”), by and among the Company, the several banks and other financial institutions or entities party thereto, as lenders, and Hercules Capital, Inc., as administrative agent and collateral agent. The LSA provides a secured term loan facility of up to $175.0 million (collectively, the “Term Loans”), consisting of: (a) an initial tranche of term loans in an aggregate amount of $75.0 million, which was funded at closing (the “Initial Loan”);

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

bluebird bio, Inc. entered into Loan and Security Agreement with Hercules Capital, Inc., as administrative agent and collateral agent, and the several banks and other financial institutions or entities party thereto as lenders valued at $175.0 million (effective 2024-03-15).

Action: entry
Agreement: credit facility
Counterparty: Hercules Capital, Inc., as administrative agent and collateral agent, and the several banks and other financial institutions or entities party thereto as lenders
Value: $175.0 million
Effective: 2024-03-15

Exact text from the filing

On March 15, 2024, bluebird bio, Inc. (the “Company”) entered into a Loan and Security Agreement (the “LSA”), by and among the Company, the several banks and other financial institutions or entities party thereto, as lenders, and Hercules Capital, Inc., as administrative agent and collateral agent.

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Source: SEC EDGAR

accession 0001293971-24-000006

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