Rhythm Pharmaceuticals secures $750 million loan facility and amends LG Chem license with $350 million fixed payments
Rhythm Pharmaceuticals announced a five‑year term loan facility led by KKR’s HealthCare Royalty and Blackstone that can provide up to $750 million, with $500 million already committed. The loan is expected to close on November 6, 2026, subject to customary conditions. At the same time the company amended its exclusive license with LG Chem for the investigational MC4R agonist bivamelagon, agreeing to pay $350 million in fixed payments over four years and reducing royalties to 1%. The financing and amended agreement are intended to fund further development of bivamelagon and other pipeline programs.
Why it matters
The loan gives Rhythm greater financial flexibility to advance its rare‑obesity drug programs, while the fixed‑payment commitment clarifies its licensing cost structure. The combined financing and licensing terms support continued R&D without diluting equity.
Key facts
- 1Rhythm secured a five‑year term loan facility with a maximum commitment of $750 million, led by KKR’s HealthCare Royalty and Blackstone. stocktitan.net
- 2$500 million of the loan facility is already committed. stocktitan.net
- 3The loan is expected to close on November 6, 2026, subject to conditions. tradingview.com
- 4The amended license agreement with LG Chem includes $350 million in fixed payments over four years. tradingview.com
- 5The royalty rate under the amended agreement is reduced to 1%. tradingview.com
- 6The loan carries an interest rate of SOFR + 4.60%. quantisnow.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.