Harvard Bioscience announces new credit facility
- Improves liquidity and operational flexibility
- Significantly reduces borrowing costs
- Supports continuous transformation to a profitable growth platform
HOLLISTON, Mass., December 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 credit facility. million dollars (the “Refinancing”). The proceeds of the new facility will be used to repay existing debt and pay related fees and expenses. Refinancing dramatically reduces borrowing costs while increasing operational flexibility through less restrictive financial covenants and access to higher levels of revolver loans.
“We are pleased with the successful execution of this refinancing and the substantial improvement in conditions over our existing facility,” commented Michael Rossi, Chief Financial Officer of Harvard Bioscience. “Achieving this element of our strategic action plan provides additional liquidity and flexibility to support Harvard Bioscience’s transformation into a profitable growth platform. In addition, the resulting interest rate reduction is expected to generate more than $ 2 million in annual cash interest savings in 2021. The successful closing of this new credit facility following the disruption caused by Covid-19 demonstrates the confidence lenders have in our term prospects. “
The refinancing was led by Citizens Bank, NA, as administrative agent, and Wells Fargo Bank, National Association and Silicon Valley Bank, as joint bookkeepers, principal co-arrangers and syndication agents with Citizens. The credit agreement provides for a term loan of $ 40.0 million and a senior revolving credit facility of $ 25.0 million.
About Harvard Bioscience
Harvard Bioscience is a leading developer, manufacturer and seller of technologies, products and services enabling basic research, discovery and preclinical testing for drug development. Our clients 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.