Viridian Therapeutics (NASDAQ: VRDN) retires $55.1M Hercules term loan years early

Rhea-AI Filing Summary

Viridian Therapeutics, Inc. has fully repaid its outstanding term loan, prepaying approximately $55.1 million on May 27, 2026 under its Loan and Security Agreement with Hercules Capital and other lenders. This amount covered all remaining principal, accrued interest, fees, costs and expenses, so all obligations under the agreement were satisfied and discharged.

The Loan Agreement, originally allowing aggregate maximum borrowings of up to $300 million, had funded $50 million to the company. That Term Loan carried a floating interest rate between 8.95% and 9.45% per year and was scheduled to run with interest-only payments into October 2029 or potentially October 2030, with final maturity on October 1, 2030. By paying it off early, Viridian eliminated this high-cost debt and terminated the lending arrangements several years ahead of maturity.

Positive

• Full repayment of high-cost debt: Viridian prepaid approximately $55.1 million to retire its Term Loan, eliminating obligations under a facility that bore between 8.95% and 9.45% interest and ran to October 1, 2030.

Negative

• None.

Insights

Credit & capital structure analyst

Viridian eliminates high-cost term debt years before maturity.

Viridian Therapeutics prepaid about $55.1 million to retire its Term Loan with Hercules, which had funded $50 million at a floating rate between 8.95% and 9.45% per year. The facility had allowed up to $300 million of borrowings but was fully terminated upon repayment.

Eliminating this loan removes fixed obligations that were scheduled to run through October 1, 2030, including several more years of interest-only payments. This can reduce future interest expense and covenant constraints, though it also represents a sizable cash outflow at the repayment date.

Investors may focus on how this affects Viridian’s balance sheet strength and funding flexibility in upcoming periods, particularly given the prior high interest rate and long-dated structure of the Term Loan.

8-K Event Classification

Item 1.02 — Termination of a Material Definitive Agreement

1 item

Item 1.02 Termination of a Material Definitive Agreement Business

A significant contract was terminated, which may affect business operations or revenue.

Key Figures

Payoff Amount: $55.1 million Term Loan Borrowed: $50 million Facility Size: $300 million +4 more

7 metrics

Payoff Amount $55.1 million Voluntary prepayment on May 27, 2026

Term Loan Borrowed $50 million Principal drawn under Loan Agreement

Facility Size $300 million Aggregate maximum borrowings allowed

Interest Rate Floor 8.95% per annum Minimum floating rate on Term Loan

Interest Rate Cap 9.45% per annum Maximum rate including margin over Prime Rate

Interest-Only Period Through Oct. 1, 2029–2030 Before principal amortization under Loan Agreement

Maturity Date October 1, 2030 Scheduled Term Loan maturity before prepayment

Key Terms

Loan and Security Agreement, Term Loan, Prime Rate, interest-only payments, +1 more

5 terms

Loan and Security Agreement financial

"under the Loan and Security Agreement, entered into and effective as of April 1, 2022"

A loan and security agreement is a legal contract that sets out the amount, repayment schedule, interest and the rules a borrower must follow, and it names specific assets a lender can claim if the borrower fails to pay. Think of it like a mortgage or car loan where the lender holds a claim on collateral until the debt is repaid. Investors care because it determines a company’s repayment priorities, borrowing costs, operational limits and how easily creditors can seize assets in distress, all of which affect equity value and credit risk.

Term Loan financial

"The Loan Agreement provided for a term loan with aggregate maximum borrowings of up to $300 million (the “Term Loan”)."

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

Prime Rate financial

"a floating per annum rate equal to the greater of 8.95% and 1.45% above the Prime Rate"

The prime rate is the interest rate banks typically charge their most creditworthy customers for short-term loans and serves as a common baseline for many other interest rates. Think of it as a price tag for borrowing: when the prime rate rises, costs for business loans, mortgages and consumer credit usually go up, which can slow spending, squeeze profits and influence stock prices and interest-sensitive sectors.

interest-only payments financial

"Interest-only payments on the borrowings under the Loan Agreement were due through October 1, 2029"

A loan payment plan where the borrower pays only the interest charge for a set period, leaving the original loan amount unchanged until later. For investors, this matters because it can boost short-term cash flow and lower default risk early on, but it also concentrates repayment or raises future payments later, which can increase credit and refinancing risk for lenders and holders of related securities—think of a lease that postpones paying down the car’s price.

maturity date financial

"until the maturity date of October 1, 2030."

The maturity date is the specific day when a loan, bond, or investment reaches its full term and the borrower must repay the borrowed amount in full. It is important for investors because it indicates when they will receive their initial money back and can plan their future financial steps accordingly. Think of it as the due date for a loan or the day a gift card or coupon expires.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Understanding 8-K Material Events →

Accepted by SEC EDGAR 05/28/2026 - 04:05 PM Learn about SEC filing dates

FAQ

What debt did Viridian Therapeutics (VRDN) repay in May 2026?

Viridian fully repaid its Term Loan under a Loan and Security Agreement with Hercules Capital and other lenders, paying approximately $55.1 million. This covered all outstanding principal, accrued interest, fees, costs and expenses, and terminated the lending arrangements.

How much did Viridian pay to retire its loan with Hercules Capital?

Viridian paid a total of about $55.1 million on May 27, 2026. The payment included all remaining principal, accrued and unpaid interest, plus associated fees, costs and expenses due under the Loan Agreement.

What were the terms of Viridian Therapeutics’ Term Loan before repayment?

The Term Loan allowed aggregate maximum borrowings up to $300 million, of which Viridian borrowed $50 million. It bore a floating annual interest rate between 8.95% and 9.45% and was scheduled to mature on October 1, 2030 with an initial interest-only period.

When was Viridian’s Term Loan originally scheduled to mature?

The Loan Agreement set a maturity date of October 1, 2030. Interest-only payments were due through October 1, 2029, or potentially through October 1, 2030 if certain regulatory milestones were met, before principal amortization began.

What happens to Viridian’s loan covenants after the May 2026 payoff?

Upon Hercules receiving the approximately $55.1 million payoff on May 27, 2026, all obligations, covenants, debts and liabilities under the Loan Agreement were satisfied and discharged in full, and the agreement and related documents were terminated.

Viridian Therapeutics, Inc.\DE false 0001590750 0001590750 2026-05-27 2026-05-27

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): May 27, 2026

VIRIDIAN THERAPEUTICS, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-36483		47-1187261
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

221 Crescent Street, Suite 103A Waltham, MA		02453
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (617) 272-4600

N/A

(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, $0.01 par value		VRDN		The Nasdaq Stock Market LLC

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 May 27, 2026, Viridian Therapeutics, Inc. (the “Company”) completed a voluntary prepayment of all outstanding principal, accrued and unpaid interest, fees, costs and expenses, equal to approximately $55.1 million in the aggregate (the “Payoff Amount”), under the Loan and Security Agreement, entered into and effective as of April 1, 2022, by and among the Company, certain of its subsidiaries from time to time party thereto, Hercules Capital, Inc. (“Hercules”) and certain other lenders named therein, which was subsequently amended on August 7, 2023 and October 17, 2025 (as amended, the “Loan Agreement”). Upon receipt by Hercules of the Payoff Amount on May 27, 2026, 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 were terminated.

The Loan Agreement provided for a term loan with aggregate maximum borrowings of up to $300 million (the “Term Loan”). Under the Loan Agreement, the Company borrowed $50 million. The Term Loan bore interest at a floating per annum rate equal to the greater of 8.95% and 1.45% above the Prime Rate (as defined in the Loan Agreement), provided that the interest rate did not exceed a per annum rate of 9.45%. Interest-only payments on the borrowings under the Loan Agreement were due through October 1, 2029, or if certain regulatory milestones were met, through October 1, 2030. 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 October 1, 2030.

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.

				Viridian Therapeutics, Inc.
Date: May 28, 2026				By:		/s/ Stephen Mahoney
						Stephen Mahoney
						President and Chief Executive Officer

Filing Exhibits & Attachments

3 documents

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.1 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 17.6 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 11.0 KB