Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 29

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 29
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 Company’s option, either (i) a base rate plus a margin
ranging from 0.25% to 0.75%, or (ii) a Secured Overnight Financing Rate (“SOFR”)-based rate plus a margin ranging from 1.25%
to 1.75%. In addition, an unused fee of 0.25% per annum is payable monthly in arrears based on the undrawn portion of the commitments
in respect of the 5/3 Revolver. Borrowings under the 5/3 Revolver are secured by a first priority lien in substantially all of the present
and future property and assets, real and personal, of the Company, subject to customary exceptions.

Under
the 5/3 Revolver, the Company is subject to certain customary affirmative and negative covenants. In addition, the 5/3 Revolver contains
certain financial covenants requiring the Company to maintain, on a consolidated basis as of the last day of each month, a fixed charge
coverage ratio of at least 1.10 to 1.0.

Deferred
financing costs of $611,000 were recorded and will be amortized to interest expense over the term of agreement. The commitment fee related
to the unused line of credit will be expensed as incurred.

As
of September 30, 2025, there were no borrowings drawn or outstanding under the 5/3 Revolver. The Company was in compliance with all covenants
as of September 30, 2025.

8.625%
Senior Notes Due 2030

In
September 2025, the Company closed a private offering of $250,000,000, aggregate principal amount of 8.625% senior notes due 2030 (the
“2030 Notes”). The 2030 Notes offering resulted in net proceeds to the Company of approximately $242,794,000 after deducting
underwriting discounts of $5,625,000 and commissions and other offering expenses of $1,581,000.

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The
2030 Notes are senior unsecured obligations of the Company. The 2030 Notes are effectively subordinated to any of the Company’s
secured indebtedness to the extent of the value of the assets securing such indebtedness. The 2030 Notes will be guaranteed on a senior
unsecured basis by the Company, subject to certain exceptions. The 2030 Notes bear interest at the rate of 8