Horizon Technology Finance Corporation (HRZN) provides venture lending and growth-capital financing to development-stage and growth companies in technology, life science, healthcare information and services, and sustainability. Its recurring announcements address secured loan facilities, portfolio activity, net investment income and NAV, monthly cash distributions and special distributions, and capital allocation by its board.
Company updates also cover its external management by Horizon Technology Finance Management LLC, affiliation with Monroe Capital, the completed merger with Monroe Capital Corporation, and the HRZN CRFH LLC joint venture focused on growth financing for small- and micro-cap public companies.
Monroe Capital has announced a definitive agreement to acquire Horizon Technology Finance Management, the advisor to Horizon Technology Finance Corporation (NASDAQ: HRZN). This acquisition is part of Monroe's strategy to expand its presence in the venture lending sector. Horizon has committed over $3 billion in loans across more than 315 companies, leveraging its expertise in technology and venture capital. Monroe aims to enhance its investment offerings, providing differentiated products to institutional investors. The transaction is expected to significantly benefit both firms, allowing for expanded market leadership in venture debt.
Horizon Technology Finance Corporation (NASDAQ: HRZN) announced a definitive agreement for Monroe Capital LLC to acquire Horizon Technology Finance Management LLC (HTFM), its investment adviser. This transaction, which requires stockholder approval, aims to enhance shareholder value by accessing Monroe Capital's extensive fundraising capabilities. HTFM's management will remain in their roles, with the expectation of maintaining and expanding venture lending strategies. Monroe Capital, with approximately $16 billion in assets, anticipates that this acquisition will provide a broader range of investment opportunities, enhancing returns and reducing expenses through economies of scale.
Horizon Technology Finance Corporation (NASDAQ: HRZN) will release its fourth-quarter financial results for the period ending December 31, 2022, on February 28, 2023, after market close. A conference call to discuss the results is scheduled for March 1, 2023, at 9:00 a.m. ET. Key executives including Robert D. Pomeroy Jr., Gerald A. Michaud, and Daniel R. Trolio will lead the call. Investors can participate via phone or listen through a live webcast on the company's website. Horizon specializes in providing secured loans to venture capital-backed companies in technology, life sciences, and sustainability sectors.
Horizon Technology Finance Corporation (NASDAQ: HRZN) reported a strong portfolio update for Q4 2022, originating $114 million in loans, with $104 million specifically for HRZN. The company achieved a total loan portfolio growth of $262 million for the year. The committed backlog reached $255 million, including $220 million in HRZN commitments. Over the entire year, the Horizon Platform originated a record $543 million in new loans. Key loans included $45 million to Evelo Biosciences (NASDAQ: EVLO) among others.
Slingshot Aerospace raised $40.85 million in an oversubscribed Series A2 funding round led by Sway Ventures. The funds will enhance Slingshot's global expansion across commercial, civil, and defense sectors, support its recent acquisitions, and accelerate product commercialization. This financing marks a significant step for Slingshot, which aims to address the growing demand for space safety solutions, given the projected increase in satellites in orbit.
Horizon Technology Finance Corporation (NASDAQ: HRZN) has announced a venture loan facility to Groundspeed Analytics, Inc., a company specializing in AI-driven solutions for the commercial P&C insurance sector. The funding will support Groundspeed's expansion and operational needs. Groundspeed's platform enhances underwriting efficiency for insurance carriers, allowing for faster and more accurate risk assessments. Horizon's President highlighted the importance of this partnership in supporting innovation within the insurance industry.
Horizon Technology Finance Corporation (NASDAQ: HRZN) announced the issuance of $100 million in Notes at a 7.56% fixed interest rate, rated A by a rating agency. These Notes are backed by $158 million in secured loans from Horizon. The transaction, facilitated by KeyBanc Capital Markets, enhances Horizon's capacity to originate new venture debt loans and aims to increase shareholder value. The Notes mature on November 15, 2030, but will not be registered under the Securities Act, restricting their sale in the U.S. without appropriate exemptions.
Horizon Technology Finance Corporation (NASDAQ: HRZN) will celebrate its 12th anniversary on NASDAQ by ringing the Closing Bell on November 8, 2022, at 4:00 pm ET. CEO Robert D. Pomeroy, Jr. highlighted the increased demand for secured loans from venture-backed companies, having invested over $2 billion since its IPO in 2010. The event aims to honor the company's partnership with NASDAQ, enhancing its reputation among founders and investors. A live webcast of the ceremony will be available online.
Horizon Technology Finance Corporation (NASDAQ: HRZN) has announced a 10% increase in monthly cash distributions to $0.11 per share for January, February, and March 2023, alongside a special distribution of $0.05 per share payable in December 2022. The total distributions amount to $0.38 per share. Since its IPO in 2010, Horizon has paid $197 million in distributions. The company also offers a Dividend Reinvestment Plan (DRIP) for shareholders to reinvest distributions into additional shares.
Horizon Technology Finance reported third-quarter 2022 net investment income of $11.1 million ($0.43 per share), surpassing $8.0 million ($0.40 per share) from last year. The total investment portfolio reached $635 million, a 40% year-over-year increase. The debt portfolio yield was 15.9%, while net assets stood at $307.7 million ($11.66 per share). The company announced a 10% increase in monthly distributions to $0.11 per share starting January 2023, alongside a special $0.05 distribution in December 2022. As of September 30, 2022, Horizon had $31.6 million in cash and $120.8 million in credit facility capacity.