4D Molecular Therapeutics secures up to $200 million loan facility from Hercules Capital
The gene therapy company entered a senior secured term loan agreement on June 24, 2026, with an initial $20 million tranche drawn at closing and additional tranches tied to milestones.
4D Molecular Therapeutics, Inc. disclosed in an 8-K filing that on June 24, 2026, it entered into a Loan and Security Agreement with Hercules Capital, Inc. that provides for term loans of up to $200.0 million, subject to the terms and conditions of the agreement.1
The facility is structured as a senior secured term loan maturing June 1, 2031. It includes a Tranche 1A Loan of $20.0 million drawn at closing, a Tranche 1B Loan of $30.0 million available at the company's election until June 15, 2027, two milestone-based tranches of $12.5 million each (Tranche 2A and 2B), a Tranche 3 Loan of $50.0 million contingent on milestones, a Tranche 4 Loan of $25.0 million also contingent on milestones, and a Tranche 5 Loan of $50.0 million available solely at Hercules's discretion.1
On interest terms, the Tranche 1A Loan carries a floating rate equal to the greater of the Wall Street Journal prime rate plus 2.00% or 8.75%, paid monthly.1 All other tranches bear interest at the greater of prime plus 2.50% or 9.25%, also paid monthly.1 The agreement caps any advance's rate at no more than 0.75% above the rate in effect when that advance was funded.1
The company also must pay an Initial Facility Charge of $500,000 and a Tranche Facility Charge equal to 1.00% of any advance for Tranche 2 through Tranche 5.1
The agreement carries financial covenants, including a minimum cash requirement tested once borrowings cross certain thresholds, unless the company's market capitalization exceeds seven times its outstanding obligations under the agreement.1 A separate performance covenant applies beginning nine months after FDA approval of the company's lead product candidate, once borrowings reach or exceed $75 million, requiring the company to meet at least one of several market capitalization, cash, or revenue-based tests.1
The obligations are secured by substantially all of the company's assets, including its intellectual property.1 The full agreement text is expected to be filed with the company's quarterly report for the period ending June 30, 2026, as the 8-K description does not purport to be complete.1
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