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# Rocket Pharmaceuticals Has Only $35 Million Of A $150 Million Hercules Loan In Hand
- URL: https://www.bullished.co/rocket-pharmaceuticals-has-only-35-million-of-a-150-million-hercules-loan-in-hand-a7a945af/
- Published: 2026-10-06T21:37:18.000Z
- Updated: 2026-10-06T21:37:18.000Z
- Description: The rest of the debt facility hinges on optional draws, a Danon disease milestone and lender approval, the 8-K says.
- Author: Matteo Parrino
- Tags: SEC Filings, RCKT, Industry: Healthcare

Rocket Pharmaceuticals [secured up to $150 million](https://markets.ft.com/data/announce/detail?dockey=600-202610061612BIZWIRE%5FUSPRX%5F%5F%5F%5F20261006%5FBW391991-1&ref=bullished.co) in senior secured term loans from Hercules Capital, but only $35 million was funded at closing on September 30, according to an 8-K filed Tuesday. The remaining four tranches depend on Rocket's own choices, a clinical milestone and lender sign-off.

## What the 8-K says

The loan is split into five tranches. The first, [$35.0 million](https://markets.ft.com/data/announce/detail?dockey=600-202610061612BIZWIRE%5FUSPRX%5F%5F%5F%5F20261006%5FBW391991-1&ref=bullished.co), was funded in full on September 30\. Two optional tranches follow: $20.0 million available through June 30, 2027, and $15.0 million available through September 30, 2027.

A $30.0 million tranche opens only after Rocket reaches a milestone tied to its Danon disease program, defined in the loan agreement. A final tranche of up to $50.0 million requires approval from the lenders' investment committee, which the filing says is in its sole discretion.

The loans mature October 1, 2030, with an extension to October 1, 2031 if the Danon milestone is met. Interest floats at the greater of the prime rate or 6.75%, plus 2.40%. Payments are interest-only through April 1, 2029, extendable to April 1, 2030 on the milestone, and to October 1, 2030 if the FDA approves a biologics license application for RP-A501 in Danon disease.

Prepaying costs 3.00% of principal in the first year, 2.00% in the second and 1.00% after that. A default adds 4.00% to the rate.

## What it changes for holders

The loan is secured by a first-priority claim on substantially all of Rocket's assets, including its intellectual property. A minimum cash covenant requires Rocket to hold cash equal to 35% to 75% of the outstanding loans, depending on which milestones are met. It is not tested while market capitalization exceeds $600.0 million.

The lenders also received warrants for up to 1,755,853 shares at $2.99 each, exercisable for seven years from closing. Warrants for 409,699 shares are exercisable now. They become fully exercisable only if Rocket draws the entire $150.0 million.

Rocket held [$283.7 million](https://www.sec.gov/Archives/edgar/data/0001281895/000114036126038818/ef20083350%5Fex99-1.htm?ref=bullished.co) in cash, equivalents and investments as of June 30, 2026, before this facility, the company said. It now projects its cash runway into the third quarter of 2028.

Shares closed at $2.48 in Tuesday's regular session and traded at $2.50 after hours (market data).

## The Danon timeline behind the structure

The terms track Rocket's pivotal Danon study. An investor presentation furnished with the filing says the company expects to finish dosing the remaining patients by mid-2027\. It targets a provisional topline readout in mid-2028 and plans an FDA application in late 2028.

Next to watch: whether Rocket draws the optional $20 million and $15 million tranches before their 2027 deadlines, and whether it hits the Danon milestone that unlocks the $30 million tranche.

### Sources

- [8-K Filing — ROCKET PHARMACEUTICALS, INC. (RCKT)](https://www.sec.gov/Archives/edgar/data/0001281895/000114036126038818/ef20083350%5F8k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ef20083350\_ex99-1.htm — ROCKET PHARMACEUTICALS, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001281895/000114036126038818/ef20083350%5Fex99-1.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ef20083350\_ex99-2.htm — ROCKET PHARMACEUTICALS, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001281895/000114036126038818/ef20083350%5Fex99-2.htm?ref=bullished.co) — SEC EDGAR
- [Rocket Pharmaceuticals Secures Strategic Credit Facility for Up to $150 Million from Hercules Capital – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610061612BIZWIRE%5FUSPRX%5F%5F%5F%5F20261006%5FBW391991-1&ref=bullished.co) — Financial Times