Harvard Bioscience, Inc. (NASDAQ: HBIO) today announced it entered into an agreement with BroadOak Capital Partners, a life-sciences-focused investment and advisory firm, to provide a $40 million credit facility comprised of three term loans, all of which will be funded on December 17, 2025.
The proceeds of the facility will be used to retire the Company’s existing debt obligations and associated fees, and strengthen its balance sheet and capital structure.
Term Loan A and Term Loan B are senior secured term loans providing aggregate gross proceeds of $32.5 million. Term Loan C is a $7.5 million senior secured term loan convertible into shares of the Company’s common stock at $1.00 per share at BroadOak’s option or automatically upon the satisfaction of certain conditions while the loans remain outstanding.
All three loans mature on December 17, 2029. Commencing December 31, 2027, the Company is required to make quarterly principal amortization payments on the Term A Loan and Term B Loan. The Amortization Date and Maturity Date may be extended by one year if the Company achieves a certain adjusted EBITDA milestone. In connection with the transaction, BroadOak received warrants to purchase an aggregate of two million shares of the Company’s common stock at a price per share of $0.50 and the right to nominate one member to the Company’s board of directors while the loans remain outstanding.
HBIO shares advanced four cents, or 5.6%, to 74 cents.
