Viridian Therapeutics, Inc.\DE 8-K

What Happened
Viridian Therapeutics announced it completed a voluntary prepayment of all outstanding principal, accrued and unpaid interest, fees, costs and expenses under its Loan and Security Agreement with Hercules Capital and other lenders. Hercules received the payoff amount on May 27, 2026, and the Loan Agreement (originally effective April 1, 2022, and amended Aug 7, 2023 and Oct 17, 2025) and related documents were terminated and discharged in full.

Key Details

• Payoff Amount: approximately $55.1 million (paid to Hercules on May 27, 2026).
• Amount originally borrowed under the Term Loan: $50.0 million (facility allowed up to $300.0 million).
• Interest terms (while effective): floating rate equal to the greater of 8.95% and Prime + 1.45%, capped at 9.45% per annum.
• Repayment structure (as provided in the Loan Agreement): interest-only payments through Oct 1, 2029 (or through Oct 1, 2030 if certain regulatory milestones met), then equal monthly principal-and-interest payments until maturity on Oct 1, 2030.

Why It Matters
Paying off and terminating the loan removes the company’s outstanding obligations and lender-imposed covenants under that facility, eliminating future interest costs and potential lender remedies tied to the agreement. For investors, this means Viridian has reduced its reported debt tied to this loan and freed itself from related contractual restrictions—but the company used about $55.1M to repay the loan, which affects available cash/resources. The filing is a factual notice of the debt payoff; it does not disclose the source of funds used for the prepayment.