Rocket Pharmaceuticals, Inc. (NASDAQ: RCKT) has entered into a Loan and Security Agreement with Hercules Capital, Inc. as the administrative agent. The agreement provides for up to five tranches of senior secured term loans with a total aggregate principal amount of $150.0 million.
The funding is structured in stages, with the first tranche of $35.0 million funded on September 30, 2026. Borrower options allow for an additional $20.0 million in Tranche 1-B and $15.0 million in Tranche 1-C, available through June 30, 2027. A $30.0 million Tranche 2 is available upon the achievement of a specified milestone, and a final Tranche 3 of up to $50.0 million requires approval from the Lenders' investment committee.
The term loans are scheduled to mature on October 1, 2030, with the maturity date potentially extending to October 1, 2031, contingent upon the achievement of the Tranche 2 Milestone and the absence of a default. Interest is calculated as a floating rate based on the greater of the prime rate or 6.75%, plus 2.40%. Borrowings are interest-only through April 1, 2029, with principal and interest repayable in equal monthly installments thereafter.
In connection with the financing, Rocket Pharmaceuticals issued warrants to the lenders to purchase a total of up to 1,755,853 shares of common stock at an exercise price of $2.99 per share. These warrants become exercisable only if the Company draws the maximum $150.0 million available under the agreement. As of the closing of the first tranche, 409,699 warrants were exercisable.
The company reported that as of June 30, 2026, it held $283.7 million in cash, cash equivalents, and investments. Based on its current operating plan, these existing resources, combined with the initial $35.0 million received, are expected to fund operations through the third quarter of 2028. Additional borrowings could extend this cash runway into 2029.
