Moderna announced a $1.5 billion five‑year credit facility with Ares Management Credit Funds that includes a $600 million term loan funded at closing and two delayed‑draw tranches: a $400 million tranche available through November 2027 and a $500 million tranche available through November 2028, the latter contingent on the company meeting key regulatory milestones.
The non‑dilutive debt is intended to strengthen Moderna’s balance sheet and provide liquidity for pipeline development, manufacturing expansion, and potential acquisitions. The facility supports the company’s goal of reaching cash breakeven by 2028 while maintaining flexibility for future growth initiatives.
Moderna’s recent financials show a decline in revenue and net losses in 2024, largely driven by reduced sales of its COVID‑19 vaccine. The new credit line is a strategic response to these headwinds, giving the company a buffer as it pivots toward a broader mRNA portfolio that includes oncology, rare disease, and seasonal vaccine candidates.
Chief Financial Officer Jamey Mock said the facility “enhances our strong balance sheet and enables increased flexibility over the coming years.” CEO Stéphane Bancel added that the company will use the capital to build a large seasonal vaccine franchise for at‑risk populations and invest the cash generated into oncology and rare‑disease therapeutics. Ares’ Co‑Head of Specialty Healthcare Doug Dieter noted that the investment reflects confidence in Moderna’s platform and disciplined capital management.
Investors viewed the announcement positively, citing the credit line as a sign of financial strength and a clear signal that Moderna is positioning itself for long‑term growth beyond the COVID‑19 market. The facility gives the company the flexibility to accelerate its mRNA platform, expand manufacturing capacity, and pursue strategic acquisitions without diluting shareholders.
The credit facility underscores Moderna’s commitment to achieving its 2028 cash‑breakeven target and demonstrates the company’s ability to secure substantial financing in a competitive market, reinforcing confidence in its diversified pipeline and manufacturing strategy.
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