Scholar Rock Holding Corp Debt Disclosure

14. Debt

On October 16, 2020 (the “Closing Date”) the Company entered into a Loan and Security Agreement with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”) for $50.0 million (the “Loan and Security Agreement”), which was to increase the Company’s borrowing capacity. Pursuant to the Loan and Security Agreement, the Company was required to maintain cash equal to the lesser of 100% of the Company’s consolidated cash or 105% of the dollar amount of the outstanding debt.

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On February 10, 2025, the Company entered into an Amended and Restated Loan and Security Agreement (the “Amended and Restated Loan and Security Agreement”) with Oxford. The Amended and Restated Loan and Security Agreement amends and restates in its entirety that certain Loan and Security Agreement, as amended.

The Amended and Restated Loan and Security Agreement provides for term loans in an aggregate principal amount of up to $200.0 million (each, a “Term Loan” and together, the “Term Loans”) subject to funding in four tranches. The

Amended and Restated Loan and Security Agreement consolidates the existing outstanding loan tranches solely with Oxford and also extends the interest-only payment period through March 2029, with principal payments to commence in April 2029. The maturity date of the loan was extended to February 1, 2030. If certain business and development milestones are achieved, the interest-only payment period may be extended by an additional twelve months, and the maturity date will be extended to February 1, 2031. In conjunction with the Amended and Restated Loan and Security Agreement, the Company was required to pay $0.9 million, which included $0.5 million to SVB for the final payment on the outstanding tranche.

The outstanding principal of each Term Loan has an annual interest rate of (a) the greater of (i) the 1-Month CME Term SOFR on the last business day of the month that immediately precedes the month in which the interest will accrue and (ii) 3%, plus (b) 5.5%. Interest is payable on a monthly basis based on the principal amount outstanding during the preceding month. In addition, the Company is required to pay Oxford a final payment fee equal to 2.00% of the original principal amount of each Term Loan advanced to the Company.

On September 19, 2025, the Company entered into a Third Amendment to the Amended and Restated Loan and Security Agreement (the “Third Amendment”) with Oxford. Pursuant to the Third Amendment, the Company was required to maintain cash equal to the lesser of 100% of the Company’s consolidated cash or 115% of the dollar amount of the outstanding debt in a U.S. controlled bank account.

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On September 29, 2025, the Company received $50.0 million from the next available tranche under the Amended and Restated Loan and Security Agreement. To date, the Company has received $100.0 million of Term Loans. The remaining two tranches, each in an amount of $50.0 million, are available to be borrowed (a) in the case of the third tranche, after the achievement of certain development and business performance milestones until September 30, 2026 and (b) in the case of the fourth tranche, after the achievement of certain development and business performance milestones until December 31, 2027.

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The following table shows required principal payments (excluding interest fees), during the next five years on debt outstanding at December 31, 2025 (in thousands):

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The Company incurred costs on behalf of the lender recorded as a debt discount of $0.5 million and incurred debt issuance costs of $0.1 million, both of which are recorded as a deduction from the carrying amount of the debt and are being amortized as interest expense over the term of the loan. The final payment fee will be treated as an additional debt discount and accreted to the debt balance over the term.

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For the years ended December 31, 2025 and 2024, the Company recorded total interest expense for the debt of $6.3 million and $6.6 million, respectively.