Answer
The press release does not disclose the coupon or effective‑interest rate on the $45 million, five‑year term loan that Rapid Micro Biosystems secured from Trinity Capital. Because the rate is not public, we have to benchmark it against what comparable, mid‑cap, high‑growth life‑science technology companies are paying in the current credit market.
Market‑rate reference point – As of August 2025, banks and specialty lenders are pricing senior term loans to “growth‑stage” biotech and life‑science firms (EBITDA ≈ $30‑$70 MM, leverage ≈ 3‑4×) at 6.5 %–8.0 % on a senior secured basis, with a 1‑2 % “up‑front” fee and a 1‑2 % “interest‑on‑interest” (PIK) component for the first 12‑18 months. The rate is typically tied to the LIBOR/SOFR benchmark plus a 3‑4 % spread, reflecting the sector’s higher R&D risk and the limited cash‑flow coverage ratios of many of these firms.
Likely positioning of Rapid’s loan – Given Rapid’s public‑company status (Nasdaq: RPID), its relatively modest leverage (≈ 2.5×) and the fact that Trinity Capital is a “non‑bank” specialty lender that often offers slightly more flexible pricing than a traditional bank, the coupon is probably at the lower end of the range – around 6.5 %–7.0 %. That would be in line with, or a touch cheaper than, the prevailing market rates for comparable borrowers and suggests Trinity was able to extend a relatively competitive financing package.
Trading implication
If the loan is indeed being issued at ~6.5 %–7.0 %—a rate that is at or below the market median for similar life‑science growth companies—Rapid’s financing cost advantage could translate into a modest upside to its free‑cash‑flow outlook and, by extension, to its equity valuation. Traders can:
- Maintain a neutral‑to‑slightly‑bullish stance on RPID while the market digests the capital‑raise, especially if the proceeds are earmarked for expanding automation platforms that promise higher gross margins.
- Watch for any credit‑spread compression in the biotech/life‑science loan market; if rates stay flat while Rapid’s cost remains low, the stock may experience a relative‑strength rally versus peers with higher‑cost debt.
In short, the undisclosed but likely‑below‑market rate gives Rapid a financing edge that, all else equal, supports a modest upside bias on the stock in the near term.