Harvard Bioscience Announces New Credit Facility
- Improves liquidity and operating flexibility
- Significantly reduces borrowing costs
- Supports ongoing transformation to profitable growth platform
HOLLISTON, Mass., Dec. 22, 2020 (GLOBE NEWSWIRE) -- Harvard Bioscience, Inc. (Nasdaq: HBIO) (“Harvard Bioscience”) today announced the refinancing of its debt with the closing of a new $65 million credit facility (the “Refinancing”). Proceeds from the new facility will be used to retire existing debt and pay related fees and expenses. The Refinancing significantly reduces borrowing costs while increasing operating flexibility through less restrictive financial covenants and access to higher levels of revolver borrowings.
“We are pleased with the successful execution of this refinancing and the substantial improvement in terms from our existing facility,” commented Michael Rossi, Chief Financial Officer of Harvard Bioscience. “Completing this element of our strategic action plan provides additional liquidity and flexibility to support the transformation of Harvard Bioscience into a profitable growth platform. Also, the reduction in interest rate achieved is expected to provide over $2 million of annual cash interest savings in 2021. The successful closing of this new credit facility following the disruptions caused by Covid-19 demonstrates the confidence lenders have in our current and long-term outlook.”
The Refinancing was led by Citizens Bank, N.A., as the administrative agent, and Wells Fargo Bank, National Association and Silicon Valley Bank, as joint bookrunners, joint lead arrangers and syndication agents with Citizens. The Credit Agreement provides for a term loan of $40.0 million and a $25.0 million senior revolving credit facility.
About Harvard Bioscience
Harvard Bioscience is a leading developer, manufacturer and seller of technologies, products and services that enable fundamental research, discovery, and pre-clinical testing for drug development. Our customers range from renowned academic institutions and government laboratories to the world’s leading pharmaceutical, biotechnology and clinical research organizations. With operations in North America, Europe, and China, we sell through a combination of direct and distribution channels to customers around the world.
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For more information, please visit our website at www.harvardbioscience.com.
For investor inquiries, please contact Michael A. Rossi, Chief Financial Officer at (508) 893-8999.