Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 59

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 59
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 agreed to operate its business in the
ordinary course and has agreed to certain other operating covenants. In addition, Melt has agreed to use reasonable best efforts to obtain
approval of the Merger Agreement and the transactions contemplated thereby by the requisite Melt stockholders needed for approval.

The
closing of this acquisition has not yet occurred and is subject to certain customary closing conditions, including the approval of the
requisite stockholders of Melt, the continued accuracy of representations and warranties and performance of covenants, and the absence
of any material adverse effect. We expect to close this acquisition before December 31, 2025.

8.625%
Senior Notes Due 2030 and Payoff of Prior Debt

In
September 2025, we 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 us of approximately $242,794,000 after deducting underwriting discounts
and commissions and other offering expenses of $7,206,000

The
2030 Notes are senior unsecured obligations and are effectively subordinated to any of our secured indebtedness to the extent of the
value of the assets securing such indebtedness. The 2030 Notes are guaranteed on a senior unsecured basis by us, subject to certain exceptions.
The 2030 Notes bear interest at the rate of 8.625% per annum. Interest on the 2030 Notes is payable semi-annually in arrears on March
15, and September 15 of each year. The issuance costs were recorded as a debt discount and are being amortized as interest expense over
the term of the 2030 Notes using the effective interest rate method.

We
used the net proceeds from the 2030 Notes offering to prepay all then outstanding senior debt borrowings, exit costs, and accrued interest
including $107,500,000 in total principal loan amount borrowed under the Credit Agreement and Guaranty (the “Oaktree Loan”)
with Oaktree Fund Administration, LLC, as administrative agent for the lenders (together, “Oaktree”), $75,000,000 in total
principal amount senior notes due 2026 (the “2026 Notes), and $40,250,000 in total principal amount senior notes due 2027 (the
“2027 Notes”). The 2026 Notes and 2027