Rocket Pharmaceuticals secures up to $150 million credit facility from Hercules Capital
The deal gives Rocket $35 million at closing, with more available in tranches tied to Danon disease program progress and Hercules's discretion.
Rocket Pharmaceuticals announced on October 6, 2026 that it entered into a credit facility agreement with Hercules Capital, Inc. for up to $150 million. The facility is intended to strengthen Rocket's financial position and support its pivotal Phase 2 study of RP-A501 for Danon disease along with its broader cardiovascular pipeline.1
Under the agreement, Rocket received $35 million at closing and may draw an additional $35 million at its option during specified periods. An additional $30 million may become available upon achievement of a specified Danon clinical milestone, and an additional $50 million is subject to Hercules's investment committee approval.1
According to the underlying Loan and Security Agreement, dated September 30, 2026, the facility is structured in five tranches: a $35.0 million Tranche 1-A funded at closing, a $20.0 million Tranche 1-B available through June 30, 2027, a $15.0 million Tranche 1-C available after Tranche 1-B is drawn or expires through September 30, 2027, a $30.0 million Tranche 2 available after a specified milestone is achieved, and a $50.0 million Tranche 3 subject to the lenders' investment committee approval.1
The term loans mature on October 1, 2030, subject to extension to October 1, 2031 if Rocket achieves the Tranche 2 Milestone, provided no default has occurred.1 Borrowings are interest-only through April 1, 2029, a period that may be extended to April 1, 2030 if the Tranche 2 Milestone is met, and further extended to October 1, 2030 if Rocket additionally achieves an FDA approval milestone for RP-A501 in Danon disease.1
The financing also includes warrants to purchase shares of Rocket's common stock.1 The company issued warrants for up to 1,755,853 shares at an exercise price of $2.99 per share.1
As of June 30, 2026, Rocket had cash, cash equivalents and investments of $283.7 million, which the company said, combined with the initial $35 million draw, is expected to fund planned operations into the third quarter of 2028.1 Additional borrowings could extend that runway into 2029, depending on future draws and spending.1
Written by readthrough’s AI from the linked primary sources and fact-checked against them automatically before publishing. Not investment advice.