đź‘“At a Glance
Borrower: Dyne Therapeutics, Inc.
Lender: Hercules Capital and managed funds
Deal Size: $275.0 million
Structure: Senior secured, multi-tranche term loan
Rate: Variable - prime rate + 2.45% with a prime floor of 7.50%
Term: ~ 60 months
Use of Proceeds: Support continued research and development and commercialization expenses associated Dyne’s leading therapeutic candidates
Source: Press Release
đź“·Borrower Snapshot
Sector: Health Care
Subsector: Biotechnology
Ownership: Public
Commercial Stage: Pre-commercial revenue
Business Overview: Dyne Therapeutics is a clinical-stage biotech company developing targeted therapies for serious muscle diseases, including genetic muscle disorders such as myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD), and facioscapulohumeral muscular dystrophy (FSHD). The company’s proprietary FORCE™ platform delivers oligonucleotide therapeutics directly to muscle tissue using antibody-oligonucleotide conjugates, improving uptake and durability. Dyne's lead programs - DYNE-101 for DM1, DYNE-251 for DMD, and DYNE-301 for FSHD - are currently in clinical development with early data showing encouraging signs of target engagement and functional benefit.
⚙️Structure & Terms
Source: SEC 8-K
Commitment: $275.0 million
- Tranche 1 commitment - $100.0 million funded at close
- Tranches 2 - 4 total $115 million in aggregate and are contingent on negotiated milestones
- Tranche 5 commitment - $60 million subject to approval from Hercules
Interest-only Period: 36 months with ability to extend to 60 months upon completion of certain clinical, regulatory, and commercial milestones
Maturity: July 1, 2030
Rate: Variable - prime rate + 2.45% with a prime floor of 7.50%
Due Diligence Fee: redacted
Initial Facility Charge: $1 million (1% of tranche 1 advance)
Final Payment Fee: 5.50%
Prepayment Fee: 2% if prepaid in year 1, 1.5% if prepaid in year 2, 0.75% if prepaid thereafter
Right to Invest: $5 million in a subsequent financing
Covenants:
- Minimum cash
- testing begins April 1, 2026 unless Dyne raises at least $350 million in equity proceeds between June 4, 2025 and December 15, 2026, then begins on January 1, 2027
- initially set to 60% of principal balance and subject to step downs based on the achievement of clinical, regulatory, and commercial milestones (specific step down percentages are redacted)
- will not be tested if market cap exceeds $1.65 billion
- Minimum Revenue
- testing begins ~ nine months after regulatory approval milestones are achieved
- measured on trailing six month basis and based on percentage to plan (performance to plan)
- compliance not required if:
- cash exceeds outstanding balance of secured obligations, or
- market cap exceeds $1.65 billion and cash is at least greater than or equal to 50% of the outstanding secured obligations
- testing begins ~ nine months after regulatory approval milestones are achieved
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