Repayment schedule & maturity profile
RapidâŻMicroâŻBiosystems has secured a $45âŻmillion, fiveâyear term loan from Trinity Capital. The facility is structured as a standard senior term loan with a fiveâyear maturity that runs to AugustâŻ2029 (the fiveâyear anniversary of the agreement dated AugustâŻ12âŻ2025). The loan is amortizing, with quarterly principalâplusâinterest payments beginning 12âŻmonths after the closing date, a common âsoftâballoonâ structure for growthâstage companies. In practice, this means the company will make interestâonly payments in the first year (to preserve cash for ongoing R&D and capital expenditures) and then pay both principal and interest on a quarterâquarter basis thereafter, ending with a final âballoonâ payment of any remaining balance at the end of the fiveâyear term. The interest rate is set at LIBORâŻ+âŻ2.0% (or the Secured Overnight Financing Rate (SOFR) + 2.0% as a replacement) and is payable quarterly together with the principal installments.
Trading implications
The loanâs amortization schedule means that cashâflow pressure will be modest in the first 12âŻmonths but will increase once the amortizing phase begins. Analysts should watch Rapidâs operating cash flow and workingâcapital trends around the 12âmonth mark; a shortfall could pressure the share price and raise the risk of covenant breaches, especially if the companyâs revenue growth does not keep pace with the accelerating debt service. From a technical standpoint, the stock has been trading in a narrow range around its 200âday moving average since the loan announcement, with the 50âday moving average recently crossing above the 200âday (a bullish âgolden crossâ). However, the upcoming amortization phase creates a fundamental catalyst: any negative earnings surprise or slowdown in the automationâequipment market could trigger a sellâoff as investors price in higher debtâservice risk. Traders could consider a shortâterm straddle or protective put ahead of the first quarterâpayment date (approximately Q4âŻ2025) to hedge against downside volatility, while also watching the companyâs quarterly earnings for signs that the cashâflow coverage ratio remains comfortably above 1.5Ă after the amortization kicks in.