[8-K] Harvard Bioscience Inc Reports Material Event
Harvard Bioscience entered into a Sixth Amendment to its Credit Agreement that waived defaults tied to missed refinancing milestones and the company's failure to meet its consolidated net leverage and fixed charge coverage covenants as of the June 30, 2025 test date. Lenders agreed not to test the financial covenants for the quarter ended September 30, 2025 provided the company remains current on payments, maintains minimum liquidity of $3.0 million and delivers certain financial reports.
The amendment raises the interest margin to SOFR + 700 bps, adds mandatory prepayment on receipt of refinancing or sale proceeds, and requires the company to take steps to refinance or repay the Credit Agreement by December 5, 2025 or face an event of default. The company will pay a fee of $0.4 million (1.00% of outstanding debt), with 25% paid at signing and the remainder payable on refinancing, repayment or default. The company discloses substantial doubt about its ability to continue as a going concern absent additional capital or refinancing.
Harvard Bioscience ha stipulato una Sesta Modifica al proprio Accordo di Credito che ha rinunciato ai default legati al mancato rispetto delle scadenze di rifinanziamento e all'incapacità della società di soddisfare i covenant di leva finanziaria netta consolidata e di copertura delle spese fisse alla data di verifica del 30 giugno 2025. I finanziatori hanno concordato di non testare i covenant finanziari per il trimestre chiuso al 30 settembre 2025, a condizione che la società sia in regola con i pagamenti, mantenga una liquidità minima di $3.0 million e consegni determinati rapporti finanziari.
La modifica aumenta lo spread di interesse a SOFR + 700 bps, introduce il rimborso obbligatorio al ricevimento di proventi da rifinanziamento o dalla vendita, e obbliga la società ad adottare misure per rifinanziare o rimborsare l'Accordo di Credito entro il 5 dicembre 2025 sotto pena di evento di inadempimento. La società pagherà una commissione di $0.4 million (1,00% del debito residuo), con il 25% versato alla firma e il saldo dovuto al rifinanziamento, al rimborso o in caso di inadempienza. La società dichiara di avere sostanziali dubbi sulla propria capacità di proseguire come ente in funzione della continuità aziendale senza capitale aggiuntivo o rifinanziamento.
Harvard Bioscience suscribió una Sexta Enmienda a su Acuerdo de Crédito que eximió los incumplimientos vinculados a no alcanzar los hitos de refinanciación y a la falta de cumplimiento por parte de la compañía de los covenant de apalancamiento neto consolidado y de cobertura de cargos fijos en la fecha de prueba del 30 de junio de 2025. Los prestamistas acordaron no evaluar los covenant financieros para el trimestre terminado el 30 de septiembre de 2025, siempre que la compañía esté al día con los pagos, mantenga una liquidez mínima de $3.0 million y entregue ciertos informes financieros.
La enmienda aumenta el margen de interés a SOFR + 700 bps, añade el prepago obligatorio al recibir ingresos por refinanciación o venta, y exige a la compañía que tome medidas para refinanciar o reembolsar el Acuerdo de Crédito antes del 5 de diciembre de 2025 o enfrente un evento de incumplimiento. La compañía pagará una comisión de $0.4 million (1,00% de la deuda pendiente), con el 25% pagado al firmar y el resto pagadero al refinanciar, reembolsar o en caso de incumplimiento. La compañía declara tener duda sustancial sobre su capacidad para continuar como empresa en funcionamiento sin capital adicional o refinanciación.
Harvard Bioscience는 차환 이행 시한 미준수 및 회사가 연결순레버리지와 고정비용 커버리지 약정(코벤언트)을 2025년 6월 30일 기준으로 충족하지 못한 것과 관련한 채무불이행을 면제하는 신용계약에 대한 6차 수정합의를 체결했습니다. 대출기관들은 회사가 지급을 제때 이행하고, 최소 유동성 $3.0 million을 유지하며 특정 재무보고서를 제출하는 한 2025년 9월 30일로 종료되는 분기에 대해서는 재무 약정의 테스트를 하지 않기로 합의했습니다.
해당 수정안은 이자마진을 SOFR + 700 bps로 인상하고, 차환 또는 매각 수익 수령 시 의무적 선지급을 추가하며, 회사가 2025년 12월 5일까지 신용계약을 차환하거나 상환하기 위한 조치를 취하지 않을 경우 채무불이행 사유가 발생한다고 규정합니다. 회사는 미지급 부채의 1.00%에 해당하는 $0.4 million의 수수료를 지급하며, 그중 25%는 서명 시 지불되고 나머지는 차환, 상환 또는 불이행 시 지불됩니다. 회사는 추가 자본 조달 또는 차환이 없을 경우 계속기업 존속능력에 대한 중대한 의문이 있다고 공시했습니다.
Harvard Bioscience a conclu une Sixième Modification de son Contrat de Crédit qui a levé les défauts liés au non-respect des jalons de refinancement et à l'incapacité de la société à satisfaire les engagements de endettement net consolidé et de couverture des charges fixes à la date de test du 30 juin 2025. Les prêteurs ont accepté de ne pas tester les covenants financiers pour le trimestre clos le 30 septembre 2025, à condition que la société soit à jour de ses paiements, maintienne une liquidité minimale de $3.0 million et remette certains rapports financiers.
La modification augmente la marge d'intérêt à SOFR + 700 bps, ajoute un remboursement obligatoire lors de la réception de produits de refinancement ou de cession, et exige que la société prenne des mesures pour refinancer ou rembourser le Contrat de Crédit d'ici le 5 décembre 2025, sous peine d'un événement de défaut. La société paiera des frais de $0.4 million (1,00% de la dette en circulation), dont 25% payés à la signature et le solde exigible lors du refinancement, du remboursement ou en cas de défaut. La société déclare avoir un doute important quant à sa capacité à poursuivre son activité sans capitaux supplémentaires ou refinancement.
Harvard Bioscience hat eine Sechste Änderung seines Kreditvertrags vereinbart, die Ausfälle im Zusammenhang mit verfehlten Refinanzierungsmeilensteinen sowie dem Nicht-Einhalten der Covenants für konsolidierte Nettoverschuldung und Deckung fester Zahlungen zum Testzeitpunkt 30. Juni 2025 aufhebt. Die Kreditgeber stimmten zu, die finanziellen Covenants für das Quartal zum 30. September 2025 nicht zu prüfen, vorausgesetzt, das Unternehmen bleibt zahlungsfähig, hält eine Mindestliquidität von $3.0 million und liefert bestimmte Finanzberichte.
Die Änderung erhöht die Zinsmarge auf SOFR + 700 bps, fügt eine verpflichtende Vorabtilgung bei Zufluss von Refinanzierungs- oder Verkaufserlösen hinzu und verpflichtet das Unternehmen, bis zum 5. Dezember 2025 Schritte zur Refinanzierung oder Rückzahlung des Kreditvertrags zu unternehmen, andernfalls droht ein Ereignis des Verzugs. Das Unternehmen zahlt eine Gebühr von $0.4 million (1,00% der ausstehenden Verschuldung), wovon 25% bei Unterzeichnung fällig sind und der Rest bei Refinanzierung, Rückzahlung oder Verzug. Das Unternehmen gibt erhebliche Zweifel (substantial doubt) an seiner Fähigkeit an, ohne zusätzliches Kapital oder Refinanzierung als fortgeführtes Unternehmen weiterzubestehen.
- Lenders waived defaults tied to missed refinancing milestones and covenant breaches as of the June 30, 2025 test date
- Temporary suspension of covenant testing for the quarter ended September 30, 2025 if the company maintains payments, provides reports, and keeps minimum liquidity of $3.0 million
- Interest margin increased to SOFR + 700 bps, raising borrowing costs materially
- Mandatory refinancing/repayment deadline of December 5, 2025; failure to accomplish refinancing steps constitutes an event of default
- $0.4 million fee (1.00% of outstanding debt) with 75% contingent on refinancing/repayment or default
- Company discloses substantial doubt about its ability to continue as a going concern without access to additional capital or refinancing
Insights
TL;DR: Covenant waivers provide short-term relief but higher borrowing costs and a hard refinancing deadline materially increase near-term credit risk.
The Sixth Amendment delivers immediate forbearance by waiving breaches as of the June 30, 2025 test date and suspending covenant testing for the September quarter if conditions are met, which avoids an immediate default. However, the effective interest rate increase to SOFR+700bps materially raises financing costs and the $3.0 million minimum liquidity test is a tight operational threshold. The December 5, 2025 refinancing/repayment deadline and the $0.4 million amendment fee concentrate risk into a near-term execution event; failure to refinance will trigger default remedies.
TL;DR: Amendment buys runway and contractual clarity but places a firm refinancing milestone that will drive strategic urgency.
By codifying forbearance and adding a mandatory prepayment on refinancing or sale proceeds, the amendment clarifies lender rights and creates a defined window for restructuring or recapitalization options. The increased margin (SOFR+700bps) and $0.4 million fee raise the cost of capital, while the December 5, 2025 deadline imposes an explicit timeline for executing a refinancing or sale. These terms are actionable and materially affect transaction timing and valuation considerations for any potential recapitalization or asset-sale scenarios.
Harvard Bioscience ha stipulato una Sesta Modifica al proprio Accordo di Credito che ha rinunciato ai default legati al mancato rispetto delle scadenze di rifinanziamento e all'incapacità della società di soddisfare i covenant di leva finanziaria netta consolidata e di copertura delle spese fisse alla data di verifica del 30 giugno 2025. I finanziatori hanno concordato di non testare i covenant finanziari per il trimestre chiuso al 30 settembre 2025, a condizione che la società sia in regola con i pagamenti, mantenga una liquidità minima di $3.0 million e consegni determinati rapporti finanziari.
La modifica aumenta lo spread di interesse a SOFR + 700 bps, introduce il rimborso obbligatorio al ricevimento di proventi da rifinanziamento o dalla vendita, e obbliga la società ad adottare misure per rifinanziare o rimborsare l'Accordo di Credito entro il 5 dicembre 2025 sotto pena di evento di inadempimento. La società pagherà una commissione di $0.4 million (1,00% del debito residuo), con il 25% versato alla firma e il saldo dovuto al rifinanziamento, al rimborso o in caso di inadempienza. La società dichiara di avere sostanziali dubbi sulla propria capacità di proseguire come ente in funzione della continuità aziendale senza capitale aggiuntivo o rifinanziamento.
Harvard Bioscience suscribió una Sexta Enmienda a su Acuerdo de Crédito que eximió los incumplimientos vinculados a no alcanzar los hitos de refinanciación y a la falta de cumplimiento por parte de la compañía de los covenant de apalancamiento neto consolidado y de cobertura de cargos fijos en la fecha de prueba del 30 de junio de 2025. Los prestamistas acordaron no evaluar los covenant financieros para el trimestre terminado el 30 de septiembre de 2025, siempre que la compañía esté al día con los pagos, mantenga una liquidez mínima de $3.0 million y entregue ciertos informes financieros.
La enmienda aumenta el margen de interés a SOFR + 700 bps, añade el prepago obligatorio al recibir ingresos por refinanciación o venta, y exige a la compañía que tome medidas para refinanciar o reembolsar el Acuerdo de Crédito antes del 5 de diciembre de 2025 o enfrente un evento de incumplimiento. La compañía pagará una comisión de $0.4 million (1,00% de la deuda pendiente), con el 25% pagado al firmar y el resto pagadero al refinanciar, reembolsar o en caso de incumplimiento. La compañía declara tener duda sustancial sobre su capacidad para continuar como empresa en funcionamiento sin capital adicional o refinanciación.
Harvard Bioscience는 차환 이행 시한 미준수 및 회사가 연결순레버리지와 고정비용 커버리지 약정(코벤언트)을 2025년 6월 30일 기준으로 충족하지 못한 것과 관련한 채무불이행을 면제하는 신용계약에 대한 6차 수정합의를 체결했습니다. 대출기관들은 회사가 지급을 제때 이행하고, 최소 유동성 $3.0 million을 유지하며 특정 재무보고서를 제출하는 한 2025년 9월 30일로 종료되는 분기에 대해서는 재무 약정의 테스트를 하지 않기로 합의했습니다.
해당 수정안은 이자마진을 SOFR + 700 bps로 인상하고, 차환 또는 매각 수익 수령 시 의무적 선지급을 추가하며, 회사가 2025년 12월 5일까지 신용계약을 차환하거나 상환하기 위한 조치를 취하지 않을 경우 채무불이행 사유가 발생한다고 규정합니다. 회사는 미지급 부채의 1.00%에 해당하는 $0.4 million의 수수료를 지급하며, 그중 25%는 서명 시 지불되고 나머지는 차환, 상환 또는 불이행 시 지불됩니다. 회사는 추가 자본 조달 또는 차환이 없을 경우 계속기업 존속능력에 대한 중대한 의문이 있다고 공시했습니다.
Harvard Bioscience a conclu une Sixième Modification de son Contrat de Crédit qui a levé les défauts liés au non-respect des jalons de refinancement et à l'incapacité de la société à satisfaire les engagements de endettement net consolidé et de couverture des charges fixes à la date de test du 30 juin 2025. Les prêteurs ont accepté de ne pas tester les covenants financiers pour le trimestre clos le 30 septembre 2025, à condition que la société soit à jour de ses paiements, maintienne une liquidité minimale de $3.0 million et remette certains rapports financiers.
La modification augmente la marge d'intérêt à SOFR + 700 bps, ajoute un remboursement obligatoire lors de la réception de produits de refinancement ou de cession, et exige que la société prenne des mesures pour refinancer ou rembourser le Contrat de Crédit d'ici le 5 décembre 2025, sous peine d'un événement de défaut. La société paiera des frais de $0.4 million (1,00% de la dette en circulation), dont 25% payés à la signature et le solde exigible lors du refinancement, du remboursement ou en cas de défaut. La société déclare avoir un doute important quant à sa capacité à poursuivre son activité sans capitaux supplémentaires ou refinancement.
Harvard Bioscience hat eine Sechste Änderung seines Kreditvertrags vereinbart, die Ausfälle im Zusammenhang mit verfehlten Refinanzierungsmeilensteinen sowie dem Nicht-Einhalten der Covenants für konsolidierte Nettoverschuldung und Deckung fester Zahlungen zum Testzeitpunkt 30. Juni 2025 aufhebt. Die Kreditgeber stimmten zu, die finanziellen Covenants für das Quartal zum 30. September 2025 nicht zu prüfen, vorausgesetzt, das Unternehmen bleibt zahlungsfähig, hält eine Mindestliquidität von $3.0 million und liefert bestimmte Finanzberichte.
Die Änderung erhöht die Zinsmarge auf SOFR + 700 bps, fügt eine verpflichtende Vorabtilgung bei Zufluss von Refinanzierungs- oder Verkaufserlösen hinzu und verpflichtet das Unternehmen, bis zum 5. Dezember 2025 Schritte zur Refinanzierung oder Rückzahlung des Kreditvertrags zu unternehmen, andernfalls droht ein Ereignis des Verzugs. Das Unternehmen zahlt eine Gebühr von $0.4 million (1,00% der ausstehenden Verschuldung), wovon 25% bei Unterzeichnung fällig sind und der Rest bei Refinanzierung, Rückzahlung oder Verzug. Das Unternehmen gibt erhebliche Zweifel (substantial doubt) an seiner Fähigkeit an, ohne zusätzliches Kapital oder Refinanzierung als fortgeführtes Unternehmen weiterzubestehen.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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CURRENT REPORT
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Item 1.01. Entry into a Material Definitive Agreement.
On August 8, 2025, Harvard Bioscience, Inc. (the “Company”) entered into a Sixth Amendment (the “Sixth Amendment”) to the Credit Agreement, dated as of December 22, 2020 among the Company, the lenders party thereto (the “Lenders”), and Citizens Bank, N.A., as administrative agent (as amended, the “Credit Agreement”). Pursuant to the Sixth Amendment, the Lenders and administrative agent agreed, subject to the terms contained in the Sixth Amendment, to waive the events of default due to the Company’s failure to achieve certain refinancing milestones and its failure to comply with the consolidated net leverage ratio covenant and the consolidated fixed charge coverage ratio covenant as of the June 30, 2025 test date. Pursuant to the terms of the Sixth Amendment, the Lenders also agreed not to test the financial covenants for the fiscal quarter ended September 30, 2025, provided that the Company continues to comply with its payment obligations, maintain minimum liquidity (defined as the sum of (a) unrestricted cash and (b) the amount by which the aggregate amount committed under the Company’s revolving credit facility exceeds the total amount drawn under the credit facility) of $3.0 million and provides the administrative agent with certain financial reports. The Sixth Amendment also added as a mandatory prepayment event the receipt of cash proceeds upon a Refinancing or upon the sale of the equity interests or all or substantially all of the assets of the Company. In addition, pursuant to the terms of the Sixth Amendment, the applicable interest rate margin was increased such that the interest rate is equal to a rate per annum based on the Secured Overnight Financing Rate plus 700 bps. In connection with the Sixth Amendment, the Company has also agreed to accomplish steps towards the refinancing or repayment of the Credit Agreement by no later than December 5, 2025. The failure to accomplish such steps shall constitute an event of default under the Credit Agreement.
The Company agreed to pay fees of $0.4 million, or 1.00% of the outstanding debt, to the Lenders in connection with the Sixth Amendment, of which 25% was paid upon the signing of the Sixth Amendment and the remaining 75% will be payable upon a refinancing or repayment of the Credit Agreement or upon the occurrence of an event of default.
The foregoing description of the Sixth Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Sixth Amendment, which is filed as Exhibit 10.1 to this current report.
The Company continues to explore alternative sources of capital that would allow it to refinance the outstanding indebtedness due under the Credit Agreement, but its ability to access such other sources of capital is uncertain. There is no assurance that such capital will be available, be obtainable on commercially acceptable terms, or provide the Company with sufficient funds to meet its objectives. Based on its anticipated cash flows from operations, unless the Company is able to access other sources of capital or extend the date for repayment under the Credit Agreement, the Company will be unable to pay its debt obligations and fund its operations beyond that date. As a result, there is substantial doubt about the Company's ability to continue as a going concern.
Forward-Looking Statements
This report contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” “believe” and similar expressions or statements that do not relate to historical matters. Forward-looking statements include, but are not limited to, information concerning expected future financial and operational performance and matters relating to our ability to continue as a going concern, fund our operations, or refinance our outstanding indebtedness. Forward-looking statements are not guarantees of future performance and involve known and unknown uncertainties, risks, assumptions, and contingencies, many of which are outside the Company’s control. Risks and other factors that could cause the Company’s actual results to differ materially from those described in its forward-looking statements include those described in the “Risk Factors” section of the Company’s most recently filed Annual Report on Form 10-K as well as in the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements are based on the Company’s expectations and assumptions as of the date of this report. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect any change in expectations, even as new information becomes available.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description | |
| 10.1 | Sixth Amendment to Credit Agreement dated August 8, 2025, among Harvard Bioscience, Inc., Citizen Bank, N. A., as the administrative agent, and the lenders party thereto. | |
| 104 | Cover Page Interactive Data File (embedded within the XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HARVARD BIOSCIENCE, INC. | |||
| Date: August 11, 2025 | By: | /s/ Mark Frost | |
| Mark Frost | |||
| Interim Chief Financial Officer | |||
FAQ
What did Harvard Bioscience (HBIO) agree with lenders in the Sixth Amendment?
What liquidity requirement did HBIO accept under the amendment?
How did the amendment change HBIO's interest costs?
Are there fees tied to the Sixth Amendment for HBIO?
What is the refinancing deadline in the amendment for HBIO?
Does HBIO disclose going-concern issues in this filing?
