HROWL - Harrow: Hedge Downside Risk With The 11.5% Yielding Baby Bonds
2024-02-05 03:26:15 ET
Summary
- Harrow has two outstanding notes on offer that come up for maturity in 2026 and 2027.
- The 11.875% Senior Notes due 2027 offer a compelling 11.5% yield on cost and trade at a just under 3% premium to their $25 per share liquidation value.
- Cash and equivalents of $65.61 million at the end of Harrow's most recent quarter have been declining, and the company is not yet GAAP profitable.
I'm on the hunt for fixed-income securities and Harrow ( HROW ) has two outstanding baby bonds that offer compelling yields. These are the 8.625% Senior Notes due 2026 ( HROWL ) and the 11.875% Senior Notes due 2027 ( HROWM ). Harrow, previously known as Harrow Health, operates in the ophthalmic healthcare market. The company's common shares have been volatile, dipping 41% over the last 1 year with the bulk of this decline happening in a single day following the company's fiscal 2023 third-quarter earnings report. I'm interested in the bonds so intraday volatility in the commons is only really relevant if it alludes to heightened credit risk. The fall came on the back of revenue guidance for fiscal 2023 and 2024 which was revised lower....
Harrow: Hedge Downside Risk With The 11.5% Yielding Baby Bonds