Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1568

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9A
Chunk 1568
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endment to the Oaktree Loan (the “Oaktree Amendment”). Under the Oaktree Amendment, the overall credit facility size was
increased from $100,000,000 to $112,500,000, and the Company made other changes related to the Santen Products Acquisition (see Note
4). The Company drew down a principal amount of $12,500,000 (the “Loan Increase”) to fund the initial one-time payment associated
with the Santen Products Acquisition and for other working capital and general corporate purposes. No other material changes to the Oaktree
Loan were made pursuant to the Oaktree Amendment. Following entry into the Oaktree Amendment and the funding of the Loan Increase upon
closing of the Santen Products Acquisition, the Company had drawn down a total principal loan amount of $77,500,000 under the Oaktree
Loan.

In October 2024, the Company entered into the Second
Amendment to Credit Agreement and Guaranty with Oaktree (“Second Amendment”). Upon satisfaction of certain conditions to
funding, the Company drew down the principal amount of the Tranche B commitment of $30,000,000 (the “$30,000,000 Draw”) to
partially fund a one-time milestone payment to Novartis. Under its asset purchase agreement with Novartis, the Company made a one-time
milestone payment to Novartis equal to $37,000,000 upon the commercial availability of TRIESENCE, which the Company paid in October 2024.
In connection with the Second Amendment, the Company incurred approximately $120,000 of costs. In connection with the Second Amendment
and following the $30,000,000 Draw, the Company has drawn down a total principal loan amount of $107,500,000 under the Oaktree Loan and
no additional principal loan amount remains available to the Company under the Oaktree Loan.

The Oaktree Loan is secured
by nearly all of the assets, including intellectual property, of the Company and its material subsidiaries. The Oaktree Loan has a maturity
date of January 19, 2026 and carries an interest rate equal to the Secured Overnight Financing Rate plus 6.5% per annum (totaling 11.2%
at December 31, 2024). The Oaktree Loan also carries an exit fee equal to 3.5% of the aggregate principal amount owed, payable at maturity.
The total exit fee of $3,763,000 has been recorded as a debt