Moderna closed a five-year term loan facility for up to $1.5 billion of capital from Ares Management Credit Funds (Ares) to increase flexibility.
The non-dilutive debt financing consists of three tranches over five years, including:
- A $600 million initial term loan funded at closing.
- A $400 million delayed draw term loan facility (DDTL), available in multiple draws at Moderna's discretion through November 2027.
- An additional $500 million DDTL, available in multiple draws at Moderna's discretion through November 2028. This tranche is contingent on the achievement of key regulatory milestones aligned with Moderna's late-stage clinical pipeline.
"While we remain well-positioned to achieve our 2028 cash breakeven target, this additional capital enhances our strong balance sheet and enables increased flexibility over the coming years," said Jamey Mock, Chief Financial Officer of Moderna. "Ares is a highly reputable lender in the healthcare space, and we are proud to have their valuable financial backing in pursuit of our long-term financial targets."
"We are pleased to provide flexible capital to Moderna at this pivotal moment in their growth trajectory," said Doug Dieter, DrPH, Co-Head of Ares Specialty Healthcare. "Moderna has already demonstrated the power of its mRNA platform with multiple commercial products and has an impressive and differentiated clinical pipeline. This investment reflects Moderna's disciplined approach to capital management and our support of their long-term financial strategy."