Harmony Biosciences obtains $185 million secured term loan facility

By Mary-Katherine Stinson

Lexington, Ky., July 27 – On July 26 Harmony Biosciences Holdings, Inc. closed on a $185 million five-year secured term loan facility with a syndicate of banks, according to an 8-K filing with the Securities and Exchange Commission.

The loan bears interest at term SOFR plus a CSA of 10 basis points plus a margin ranging from 350 to 400 bps based on the company’s senior secured net leverage ratio. The initial margin will be 350 bps until the receipt of the applicable financials for the borrower’s first full fiscal quarter after the effective date.

The rate will increase in each case, by an additional 200 bps on all past due obligations or following any loan acceleration.

Harmony paid an upfront fee of 0.50% of the aggregate principal amount of the loan at closing.

The company may prepay the loan at any time. The repayment schedule calls for quarterly $3.5 million principal payments beginning on Dec. 31, increasing to quarterly $4.6 million principal payments beginning on Dec. 31, 2025, with the balance paid on the maturity date of July 26, 2028.

The agreement allows the establishment of incremental revolving facilities or incremental term facilities, subject to the agreement of one or more new or existing lenders, and certain other customary conditions.

The loan is guaranteed by subsidiary Harmony Biosciences, LLC.

JPMorgan Chase Bank, NA serves as administrative agent, and acted as bookrunner and lead arranger, for the term loan facility.

Proceeds of the loan together with cash on hand were used to repay in full and terminate Harmony’s credit agreement with Blackstone Alternative Credit Advisors LP, of which $196.5 million was outstanding, and related fees and expenses. The loan was scheduled to mature on Aug. 9, 2026. The company paid a repayment premium of 200 bps of the outstanding principal amount of the Blackstone loan.

Plymouth Meeting, Pa.-based Harmony Biosciences is a biopharmaceutical company focused on developing and commercializing novel treatment options for people living with rare diseases.

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