NASHVILLE, Tenn.—Harrow (Nasdaq: HROW), a leading U.S. eyecare pharmaceutical company, announced that it has entered into a $100 million secured credit financing agreement with funds managed by Oaktree Capital Management, L.P. The interest-only secured credit facility carries an interest rate equal to the three-month secured overnight financing rate (SOFR) plus 6.50 percent, includes flexible terms and covenants, and is expected to mature in approximately three years. A portion of the proceeds from the new facility was used to pay off indebtedness under Harrow’s existing secured loan with an affiliate of B. Riley Financial, Inc., with the remainder to be used for future milestone payments related to a recently announced acquisition and for general corporate purposes.

In commenting on the announcement, Mark L. Baum, chairman and chief executive officer of Harrow, said, “We are pleased to enter into this credit facility, which strengthens our balance sheet and provides us the flexibility needed to pursue additional acquisitions—in alignment with our growth strategy. We are grateful for the confidence and support of Oaktree, and we look forward to working closely with them as a strong financial partner.”

“We are excited to partner with Harrow during this transformational period in its history—marked by the recent FDA approval, J-Code assignment, pass-through reimbursement status approval, and upcoming launch of Iheezo, as well as their other recent product acquisitions,” said Steve DeNelsky, managing director, Life Sciences Lending at Oaktree. “We are enthusiastic about Harrow’s growth strategy and believe this extension of capital supports the Harrow leadership team as it continues to solidify its position as a leading U.S. eyecare pharmaceutical company.”

Oaktree is a leader among global investment managers specializing in alternative investments, with $170 billion in assets under management as of Dec. 31, 2022. The firm has over 1,050 employees and offices in 20 cities worldwide.