Harrow Announces $50 Million Expansion of Senior Notes Due 2030
Harrow, Inc. has announced a new debt offering, expanding its existing senior notes with an additional $50 million of 8.625% senior notes due in 2030. This move falls under the category of debt financing and represents a strategic effort to raise capital for general corporate purposes, including growth initiatives and product development.
The new notes will be issued under the same terms as Harrow’s existing senior notes issued in September 2025, effectively increasing the total outstanding amount of this debt series. The company completed the sale through a private offering targeted at qualified institutional buyers and certain non-U.S. investors.
Key details:
- Harrow issued $50 million in additional 8.625% senior notes due 2030, expanding its existing $250 million senior notes issued in September 2025.
- The new notes carry the same terms as the existing notes, except for the issuance date and issue price.
- These notes will be treated as a single series with the existing notes, meaning they share the same rights, covenants, and payment schedules.
- The offering was completed on March 27, 2026, through a private placement to qualified institutional buyers in the U.S. and certain non-U.S. investors offshore.
- Harrow received approximately $48.7 million in net proceeds after deducting discounts and offering expenses.
- The company intends to use the proceeds for general corporate purposes, which may include funding new product launches, accelerating product development, pursuing strategic business opportunities, and related investments.
- The issuance is supported by a supplemental indenture that amends the original indenture governing the existing notes to incorporate the new issuance.
- Harrow has agreed to indemnify the initial purchasers against certain liabilities related to the offering.
- The notes are guaranteed by certain subsidiaries of Harrow, consistent with the existing notes’ structure.
- The trustee for the notes is U.S. Bank Trust Company, National Association.
Implications:
- This additional debt issuance increases Harrow’s total senior notes outstanding under the 8.625% due 2030 series to $300 million.
- By issuing more notes under the same terms, Harrow maintains a consistent capital structure for this tranche of debt, simplifying management and investor understanding.
- The proceeds provide Harrow with additional liquidity to support growth and strategic initiatives without altering the interest rate or maturity profile of its existing debt.
- Investors in the existing notes will see their holdings effectively combined with the new notes, preserving the priority and protections of their investment.
Overall, this offering strengthens Harrow’s financial flexibility by raising capital on favorable terms aligned with its existing debt, supporting the company’s ongoing growth and development plans.