NEW YORK—Covington advised Harvard Bioscience, Inc. in its entry into an agreement with BroadOak Capital Partners, a life-sciences-focused investment and advisory firm, to provide three term loans to Harvard Bioscience in an aggregate principal amount of $40 million, all of which were funded upon closing of the transaction.
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 Harvard Bioscience’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. In connection with the transaction, BroadOak also received warrants to purchase an aggregate of 2 million shares of Harvard Bioscience’s common stock at a price per share of $0.50 and the right to nominate one member to the board of directors of Harvard Bioscience while the loans remain outstanding.
The proceeds of the facility will be used to retire Harvard Bioscience’s existing debt obligations and associated fees and to strengthen its balance sheet and capital structure.
Harvard Bioscience is a developer, manufacturer and seller of technologies, products and services that enable fundamental advances in life science applications, including research, drug and therapy discovery, bio-production and preclinical testing for pharmaceutical and therapy development.
The Covington team included Jen Uren, Matt Foster, and Nancy Rich (finance), Megan Gates and Sabrina Tompkins (securities), and Kurt Baca and Lingyun Li (tax).
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