Revolution Medicines: draws $250,000,000 Tranche A loan

What happened

• Revolution Medicines, Inc. filed an 8-K reporting that on Oct 8, 2026 Royalty Pharma Development Funding, LLC advanced the Tranche A Loan in an aggregate principal amount of $250,000,000 under the Loan Agreement dated Jun 23, 2025. The company borrowed the Tranche A Loan and paid the lender a $5,000,000 draw fee.
• The filing also reports that, under the Revenue Participation Right Purchase and Sale Agreement dated Jun 23, 2025 with Royalty Pharma Investments 2019 ICAV, the company elected not to deliver a Tranche 3 Notice and therefore did not receive a Tranche 3 Purchase Price of up to $250,000,000.

Key details

• Tranche A Loan: $250,000,000 advanced on Oct 8, 2026; $5,000,000 draw fee paid.
• Interest: floating rate equal to three-month Term SOFR, subject to a floor of 3.50%, plus 5.75%; interest payable quarterly in arrears; interest-only with principal due Oct 8, 2032.
• Prepayment terms: make-whole if prepaid before the second anniversary (interest through that anniversary plus a 3.0% premium); 3.0% prepayment premium if prepaid on or after the second anniversary but before the third; 1.0% if prepaid on or after the third anniversary but before maturity.
• Additional availability: following the Tranche A funding, up to an additional $500,000,000 of loans remain potentially available under the Loan Agreement, subject to milestones and conditions; separately, up to an additional $500,000,000 of purchase price payments remain potentially available under the Royalty Purchase Agreement.

Why it may matter

• Item 2.03 (creation of a direct financial obligation) is reported for the Tranche A Loan; Item 8.01 (other events) describes the Tranche A funding tied to the FDA approval and the company’s election not to deliver the Tranche 3 Notice under the royalty agreement.
  This filing does not show why the insider traded or why the company acted.