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bluebird bio | 8-K: Current report

SEC announcement ·  Mar 18 08:05
Summary by Moomoo AI
On March 15, 2024, bluebird bio, Inc. entered into a significant financial agreement with several banks and financial institutions, with Hercules Capital, Inc. serving as the administrative and collateral agent. The Loan and Security Agreement (LSA) provides bluebird bio with a secured term loan facility totaling up to $175 million. The initial tranche of $75 million was funded at closing, with additional tranches available upon meeting specific milestones related to the company's LYFGENIA patients and financial performance. The term loans carry an interest rate based on the Prime Rate plus a margin or a fixed rate, with interest payable monthly and principal repayments starting after an interest-only period, maturing on April 1, 2029. Prepayment premiums apply if the loans are repaid early, and the...Show More
On March 15, 2024, bluebird bio, Inc. entered into a significant financial agreement with several banks and financial institutions, with Hercules Capital, Inc. serving as the administrative and collateral agent. The Loan and Security Agreement (LSA) provides bluebird bio with a secured term loan facility totaling up to $175 million. The initial tranche of $75 million was funded at closing, with additional tranches available upon meeting specific milestones related to the company's LYFGENIA patients and financial performance. The term loans carry an interest rate based on the Prime Rate plus a margin or a fixed rate, with interest payable monthly and principal repayments starting after an interest-only period, maturing on April 1, 2029. Prepayment premiums apply if the loans are repaid early, and the company also agreed to an end of term charge and a facility charge on draws. The loans are secured by a lien on nearly all assets of bluebird bio and are subject to financial covenants regarding cash reserves and product revenue from the sale of the company's FDA-approved therapies. Additionally, the company issued warrants to the lenders, allowing them to purchase shares of bluebird bio's common stock, and agreed to provide investment opportunities to the lenders in future equity offerings.

This announcement is a separate document:

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