TSL Express Daily News

Harrow, Inc. (NASDAQ:HROW), a pharmaceutical company with a market capitalization of $1.74 billion and impressive revenue growth of nearly 48% in the last twelve months, announced Monday that it has entered into a new senior secured revolving credit facility with Fifth Third Bank, National Association. According to a statement based on a recent SEC filing, the agreement was signed on Friday and provides Harrow with an initial principal amount of $40 million, along with an uncommitted incremental revolving line of credit of up to $20 million. InvestingPro analysis indicates that while the company operates with a moderate level of debt, it maintains a healthy gross profit margin of 74.6%.

The new credit facility will mature on September 26, 2030, or earlier if certain conditions are met, including a provision related to the maturity of Harrow’s 8.625% senior notes due 2030. Borrowings under the agreement will bear interest at a floating rate, which gives Harrow the option to select between a base rate plus a margin of 0.25% to 0.75%, or a Secured Overnight Financing Rate (SOFR)-based rate plus a margin ranging from 1.25% to 1.75%. An unused fee of 0.25% per year will be paid monthly on the undrawn portion of the commitments.

The facility is secured by a first priority lien on substantially all present and future assets of Harrow and its subsidiary guarantors, subject to customary exceptions. The agreement also includes affirmative and negative covenants, such as limitations on additional debt, asset sales, investments, liens, related-party transactions, mergers, dividend payments, and prepayment of other indebtedness, with certain exceptions.

Harrow is required to maintain a fixed charge coverage ratio of at least 1.10 to 1.0 on a consolidated basis at the end of each month.

The company stated that the full text of the credit agreement will be filed as an exhibit to its Quarterly Report on Form 10-Q for the quarter ending September 30, 2025. The information in this article is based on a press release statement and the company’s recent SEC filing. According to InvestingPro, which offers comprehensive analysis and 13 additional key insights about Harrow, analysts expect the company to be profitable this year despite current short-term liquidity challenges. For deeper insights into Harrow’s financial health and future prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro.

In other recent news, Harrow, Inc. announced its decision to acquire Melt Pharmaceuticals, Inc., a company focused on developing non-opioid, non-intravenous sedation therapies. This acquisition centers on Melt’s lead investigational therapy, MELT-300, which combines midazolam and ketamine for sedation without intravenous administration. In a strategic move, Harrow also announced plans to expand its Harrow Access for All program across its ophthalmic medication portfolio by late 2025. This initiative follows the success of their VEVYE Access for All program, which significantly boosted prescriptions for their dry eye treatment.

In financial developments, Harrow priced a $250 million private offering of senior unsecured notes at an interest rate of 8.625%, due in 2030. This offering is set to close on September 12, pending customary conditions. Additionally, Harrow has entered into a commitment with Fifth Third Bank for a new $40 million revolving credit facility. Analyst firm B.Riley has raised its price target for Harrow Health to $70, maintaining a Buy rating and highlighting Harrow as a top idea for the latter half of 2025. B.Riley notes the company’s aim to achieve a $1 billion-plus revenue run-rate by 2028 as a driver for this positive outlook.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.