Loan & DebtJun 30, 2026, 04:22 PM
Disc Medicine Amends Loan Agreement, Draws Down $30M
AI Summary
Disc Medicine, Inc. entered into a First Amendment to its Loan and Security Agreement with Hercules Capital, Inc. to extend the periods for future Advances. The company agreed to draw down $30,000,000 from the Tranche 1-B Advance. The existing $50,000,000 Tranche 1-C Advance was divided into two $25,000,000 loans, with extended availability dates. Additionally, the drawdown periods for Tranche 2 and Tranche 3 Advances were extended, and the minimum cash covenant terms were modified.
Key Highlights
- Agreed to draw down $30,000,000 from Tranche 1-B Advance.
- Existing $50,000,000 Tranche 1-C Advance split into two $25,000,000 loans.
- First $25,000,000 loan available through March 31, 2027.
- Second $25,000,000 (Tranche 1-D) available through April 30, 2027.
- Tranche 2 Advance drawdown period extended to December 15, 2027.
- Tranche 3 Advance drawdown period extended to June 30, 2028.
- Minimum cash covenant initial testing date set for July 1, 2028.
Price Impact
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