Akero Therapeutics (NASDAQ: AKRO) prepays $37.6M Hercules term loan

Rhea-AI Filing Summary

Akero Therapeutics, Inc. voluntarily repaid in full its outstanding debt under a term loan facility with Hercules Capital. On September 23, 2025, the company paid an aggregate $37.6 million, covering all outstanding principal, accrued and unpaid interest, fees, costs and expenses under its Loan and Security Agreement.

Following receipt of this payoff amount, all obligations, covenants, debts and liabilities under the loan were satisfied and discharged, and the Loan Agreement and related documents were terminated, other than the existing warrants. The facility had allowed borrowings of up to $150 million, of which Akero had drawn $35 million at a variable interest rate with a scheduled maturity in March 2027.

Positive

• Akero Therapeutics fully repaid its Hercules Capital term loan with a $37.6 million payoff, satisfying and discharging all obligations under the facility and terminating the Loan Agreement other than existing warrants.

Negative

• None.

Insights

Capital structure and credit analyst

Akero fully repays $37.6M Hercules term loan, eliminating obligations under the facility.

Akero Therapeutics made a voluntary payoff of $37.6 million on September 23, 2025, covering all principal, accrued interest, fees, costs and expenses owed under its Loan and Security Agreement with Hercules Capital. The term loan originally allowed borrowings up to $150 million, and the company had drawn $35 million at a variable interest rate tied to the prime rate.

With Hercules’ receipt of the payoff amount, all obligations, covenants, debts and liabilities under the loan were satisfied and discharged, and the Loan Agreement and related documents were terminated, except for the existing warrants. This converts what was scheduled to be interest-only payments through January 1, 2026 and amortization to March 1, 2027 into an immediate cash outflow, simplifying the company’s debt profile.

The early repayment removes the contractual restrictions and future interest burden associated with the facility. Future disclosures in the company’s periodic filings may provide additional detail on the impact of this payoff on liquidity and capital resources.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 23, 2025

Akero Therapeutics, Inc.

(Exact name of registrant as specified in its charter)

Delaware		001-38944		81-5266573
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

601 Gateway Boulevard, Suite 350 South San Francisco, CA		94080
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (650) 487-6488

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		AKRO		The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.02 Termination of a Material Definitive Agreement

On September 23, 2025, Akero Therapeutics, Inc. (the “Company”) completed a voluntary prepayment of all outstanding principal, accrued and unpaid interest, fees, costs and expenses, equal to $37.6 million in the aggregate (the “Payoff Amount”), under the Loan and Security Agreement (as amended, the “Loan Agreement”), dated as of June 15, 2022 between the Company and Hercules Capital, Inc. (“Hercules”), which was subsequently amended on June 7, 2023 and February 28, 2024. Upon receipt by Hercules of the Payoff Amount on September 23, 2025, all obligations, covenants, debts and liabilities of the Company under the Loan Agreement were satisfied and discharged in full, and the Loan Agreement and all other documents entered into in connection with the Loan Agreement, other than the Warrants (as defined in the Loan Agreement), were terminated.

The Loan Agreement provided for a term loan with aggregate maximum borrowings of up to $150 million (the “Term Loan”). Under the Loan Agreement, the Company borrowed $35 million. The Term Loan bore interest at a variable annual rate equal to the greater of either (a) 7.65% and (b) the prime rate (as reported in the Wall Street Journal) plus 3.65%. Interest-only payments on the borrowings under the Loan Agreement were due through January 1, 2026. After the interest-only payment period, borrowings under the Loan Agreement were due in equal monthly payments of principal and accrued interest until the maturity date of March 1, 2027.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: September 29, 2025				AKERO THERAPEUTICS, INC.
				By:		/s/ Andrew Cheng
				Name: Title:		Andrew Cheng, M.D., Ph.D. President and Chief Executive Officer

FAQ

What did Akero Therapeutics (AKRO) announce regarding its Hercules Capital loan?

Akero Therapeutics announced that on September 23, 2025 it voluntarily prepaid the full $37.6 million payoff amount under its Loan and Security Agreement with Hercules Capital, covering all outstanding principal, accrued interest, fees, costs and expenses.

How much debt did Akero Therapeutics (AKRO) originally borrow under the Hercules term loan?

Under the Loan and Security Agreement with Hercules Capital, Akero Therapeutics borrowed $35 million out of an aggregate maximum borrowing capacity of up to $150 million.

What happened to Akero Therapeutics’ Loan and Security Agreement after the $37.6 million payoff?

After Hercules Capital received the $37.6 million payoff amount, all obligations, covenants, debts and liabilities of Akero Therapeutics under the Loan and Security Agreement were satisfied and discharged in full, and the agreement and related documents were terminated, other than the warrants.

What were the original interest and maturity terms of Akero Therapeutics’ Hercules loan?

The term loan bore interest at a variable annual rate equal to the greater of 7.65% or the prime rate plus 3.65%, with interest-only payments through January 1, 2026 and equal monthly principal and interest payments scheduled until the March 1, 2027 maturity date.

Does Akero Therapeutics (AKRO) still have any obligations under the Hercules Loan Agreement?

Following payment of the $37.6 million payoff amount, Akero Therapeutics’ obligations under the Loan and Security Agreement were discharged and the agreement was terminated, other than the warrants issued in connection with the loan.

Who signed the report for Akero Therapeutics regarding the loan payoff?

The report was signed on behalf of Akero Therapeutics by Andrew Cheng, M.D., Ph.D., the company’s President and Chief Executive Officer.