BridgeBio Pharma, Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk As of June 30, 2021, we held cash, cash equivalents and marketable securities of $898.4 million. Our cash equivalents consist of amounts invested in money market accounts, such as money market funds and short-term commercial paper. Our marketable securities consisted of commercial papers, supranational debt securities and short-term and long-term U.S. treasury notes and corporate debt securities. We do not enter into investments for trading or speculative purposes and have not used any derivative financial instruments to manage our interest rate risk exposure. We have not been exposed nor do we anticipate being exposed to material risks due to changes in interest rates. We do not believe that our cash, cash equivalents or marketable securities have a significant risk of default or illiquidity. As of June 30, 2021, we had $100.0 million in variable rate debt outstanding. The Hercules Term Loan, which had a principal balance of $100.0 million, matures in May 2025, with interest-only monthly payments until June 2024. The Hercules Term Loan provides for an interest rate on the outstanding principal balance equal to the greater of (x) a floating interest rate linked to the prime rate as reported in the Wall Street Journal plus 4.40% and (y) 7.65% (7.65% as of June 30, 2021), payable monthly. A hypothetical 100 basis point change in interest rate during any of the periods presented would not have had a material impact on our financial statements. Our 2029 Notes and 2027 Notes had principal balances of $747.5 million and $550.0 million, respectively, as of June 30, 2021 and bear fixed interest rates. Our cash flows on these debt obligations are not subject to variability as a result of changes in interest rates.