aibioDyne Therapeutics draws $50.0 million more under Hercules facility
Tickers DYN
Dyne Therapeutics' Hercules facility now totals up to $400.0 million, with $200.0 million outstanding after a $50.0 million draw on June 16, 2026. Hercules Capital, Inc. is administrative agent and collateral agent for the lenders.
Key facts
- Company
- Dyne Therapeutics, Inc. (NASDAQ: DYN)
- News type
- Debt Financing
- Primary source
- Dyne Therapeutics, Inc. 8-K (2026-06-17)
The second amendment
Dyne Therapeutics, Inc. (Nasdaq: DYN) entered into the Second Amendment to its Loan and Security Agreement on June 16, 2026. Hercules Capital, Inc. acts as administrative agent and collateral agent, and certain other financial institutions are the lenders. The original agreement is dated June 27, 2025 and was amended once before, on December 8, 2025.
The amendment adds two tranches of $50.0 million each and raises the final tranche by $25.0 million, bringing the facility to up to $400.0 million. The company borrowed one of the new tranches, $50.0 million, on the amendment closing date. It now has $200.0 million of outstanding principal. Three further tranches, up to $125.0 million in total, are available only if specified clinical, regulatory and commercial milestones are met. A final tranche of up to $75.0 million is subject to approval by the lenders' investment committee.
Rates, maturity and collateral
The loans bear interest at the Wall Street Journal prime rate, with a floor of 7.50%, plus 2.45%. Interest is payable monthly. The company may pay interest only until July 1, 2029, and that period can run to maturity if milestones are met. After the interest-only period, repayment begins in equal monthly installments. All amounts are due on July 1, 2030.
The company granted the agent a first-priority security interest in substantially all of its property, including intellectual property, subject to customary permitted liens and other exceptions in the loan agreement.
The covenant changes
The minimum cash covenant requires the company to keep specified levels of cash in accounts subject to a control agreement in favor of the agent. The amendment moves the first test date from January 1, 2027 to July 1, 2027, and that date can be pushed to July 1, 2028 if the company meets certain financing milestones. It also cuts the initial required cash from 60% of outstanding obligations to 40%.
The covenant is tested only if the company's market capitalization is below $1.65 billion. The annual report lists, among its forward-looking risks, its ability to comply with the covenants under the Hercules loan and to meet interest and principal payments.
Who is named, and what is not
Hercules Capital, Inc. is the administrative and collateral agent. The other lenders are described only as financial institutions party to the agreement, and the 8-K does not name them. The 8-K does not name a placement agent or advisor, and it names no legal counsel. The filing does not state how the company will use the loan proceeds, and the full second amendment will be filed with the quarterly report for the period ending June 30, 2026.
Spending, losses and cash
Research and development expense rose to $398.3 million in 2025 from $281.4 million in 2024. The net loss widened to $446.2 million from $317.4 million. Cash used in operations rose to $403.2 million from $292.4 million.
At the end of 2024 the company held $435.4 million in cash and cash equivalents and $206.8 million in short-term investments. The annual report's forward-looking statements cover its estimates of how long its cash, cash equivalents and marketable securities will fund operations, debt service and capital expenditures, and its need for additional financing.
The borrowing adds floating-rate debt with a floor, and it comes after cash used in operations rose to $403.2 million in 2025.