L.O.T.W. #138 - Rapid Micro Cultures a Stronger Balance Sheet with New Growth Capital Loan
Structured term loan from Trinity Capital enhances financial flexibility and funds continued commercial expansion
Rapid Micro Biosystems entered into a five-year, $45 million term loan facility with Trinity Capital Inc., drawing $20 million at closing with access to up to an additional $25 million through milestone-based and discretionary tranches. The financing strengthens the company’s balance sheet and supports its path toward positive cash flow. Proceeds will be used for general corporate purposes, including commercial expansion of the Growth Direct® system and ongoing investments in manufacturing efficiency and product cost reduction. The facility carries a floating interest rate initially set at 11.5% and includes a 36-month interest-only period, extendable upon future tranche draws.
👓At a Glance
Borrower: Rapid Micro Biosystems, Inc.
Lender: Trinity Capital Inc.
Deal Size: $45 million
Structure: Multi-tranche term loan
Rate: Variable, greater of Prime + 4.0% or 11.0%
Term: ~60 months
Use of Proceeds: General corporate purposes, commercial expansion, and ongoing investments
Source: Press Release
📷Borrower Snapshot
Sector: Health Care
Subsector: Life Sciences Tools and Services
Ownership: Public (Nasdaq: RPID)
Commercial Stage: Revenue generating; LTM EBITDA (-)
Business Overview: Rapid Micro Biosystems, Inc. develops and manufactures automated microbial detection systems used by biopharmaceutical and contract manufacturing organizations to ensure the sterility and safety of products. The company’s flagship Growth Direct® platform automates and accelerates traditional microbial quality control testing, reducing time-to-result and improving data integrity across the manufacturing process. Headquartered in Lowell, Massachusetts, Rapid Micro Biosystems serves a global customer base in sterile drug production, cell and gene therapy, and vaccine manufacturing.
⚙️Structure & Terms
Source: SEC 10-Q
Commitment: $45.0 million multi-tranche term loan
Tranche A - $20.0 million funded at close
Tranche B - $10.0 million available through January 31, 2027 and subject to undisclosed commercial and operational milestones
Tranche C - $10.0 million available through July 31, 2027 and subject to undisclosed commercial and operational milestones
Tranche D - $5.0 million subject to Lender’s approval
Repayment:
36 month interest only, extendable if future loan tranches are drawn
Maturity: September 1, 2030
Collateral: First priority security interest all asset lien
Rate: Variable, greater of Prime + 4.0% or 11.0%
Fees:
$100k upfront deposit
1.0% commitment fee on amounts drawn
4.0% end of term payment
Prepayment fee (3% - Year 1, 2% - Year 2, 1% - Years 3-5)
Warrants:
3.0% warrant coverage on drawn down amount of applicable tranche
Financial Covenants: No financial performance or liquidity covenants disclosed
Nice! What are the terms of those warrants? I’m assuming they are perpetual, but do they get diluted?