bluebird bio, Inc. announced that it has entered into a $175 million five-year, term loan facility with Hercules Capital, Inc. The transaction strengthens the Company?s balance sheet as it executes on the commercial launches for its three FDA approved gene therapies ? LYFGENIA for sickle cell disease, ZYNTEGLO for beta-thalassemia and SKYSONA for cerebral adrenoleukodystrophy. The term loan facility provides for up to $175 million of term loans in aggregate, available in four tranches.

Upon closing of the transaction, the first tranche of $75 million was drawn. Under the terms of the agreement, bluebird will be eligible to draw two additional tranches of $25 million each, subject to the achievement of commercial milestones. Based on launch trajectory and current business plans, and assuming three tranches totaling $125 million are executed, the transaction is expected to extend bluebird?s cash runway through the first quarter of 2026.

A fourth tranche of up to $50 million may be available at the sole discretion of Hercules. During the first three years of the five-year term, the Company will be responsible for paying only the interest on any amounts borrowed; any outstanding balance as of April 1, 2027 will be amortized over the remaining life of the loan. J. Wood Capital Advisors acted as sole financial advisor to the Company.

Latham & Watkins LLP served as legal counsel to bluebird and DLA Piper served as legal counsel to Hercules.