Horizon Technology Finance Corporation filed its annual report as a business development company focused on secured venture loans to technology, life science, healthcare information and services, and sustainability companies. As of December 31, 2025, the debt portfolio held 38 investments with aggregate fair value of $596.0 million, and net assets of $318.5 million.
For 2025, the dollar-weighted annualized yield on average debt investments was 15.8%, with an overall portfolio yield of 14.6%, while total return based on market value was (13.6)%. As of March 3, 2026, there were 47,804,711 shares of common stock outstanding. The company describes a pending multi‑step transaction in which Monroe Capital Income Plus Corporation will acquire Monroe Capital Corporation’s investment assets and liabilities for cash, followed by a merger that would ultimately leave Horizon as the surviving entity. The filing also details a 2025 change of control of its external advisor to an affiliate of Wendel SE, the approval of a new investment management agreement, and several senior management transitions, while affirming continued adherence to its venture lending strategy and regulated investment company tax status.
Horizon Technology Finance Corporation announced that its board has declared monthly cash distributions of $0.06 per share, to be paid in April, May and June 2026, for a total of $0.18 per share. The payments are scheduled for April 15, May 15 and June 16, 2026 to stockholders of record on March 16, April 16 and May 18, 2026, respectively.
The board sets distribution levels each quarter based on results of operations, spillover income and its longer-term outlook, including the expected impact of the anticipated merger with Monroe Capital Corporation. The company notes it has paid $360 million in distributions since its 2010 initial public offering and maintains a Dividend Reinvestment Plan that automatically reinvests distributions in additional shares for stockholders who do not opt out.
Horizon Technology Finance reported fourth quarter 2025 net investment income of $8.3 million, or $0.18 per share, on total investment income of $20.7 million, as a smaller debt portfolio and lower prepayments reduced revenue. Net realized losses on investments were $23.3 million, but this was offset by $24.7 million of net unrealized appreciation, leading to a modest net increase in net assets from operations of $0.20 per share.
For full year 2025, net investment income was $44.4 million, or $1.05 per share, down from $1.32 per share in 2024, while net realized losses on investments widened to $55.1 million. Net asset value fell to $6.98 per share at December 31, 2025, from $8.43 a year earlier. The debt portfolio carried a fair value of $596.0 million with a 14.3% yield in the quarter, and committed backlog reached $154 million. Horizon ended the year with $189.2 million of available liquidity and a net debt-to-equity leverage ratio of 105%, and its board declared monthly distributions of $0.06 per share for April, May and June 2026 while progressing toward a planned merger with Monroe Capital Corporation.
Horizon Technology Finance Corporation reported that its wholly owned subsidiary, Horizon Credit II LLC, entered into two new amendments to existing financing arrangements with KeyBank National Association and related parties. On February 6, 2026, Horizon Credit II LLC executed Amendment No. 3 to the Second Amended and Restated Loan and Security Agreement with KeyBank and the lenders. On February 10, 2026, Horizon Credit II LLC and Horizon Technology Finance Corporation executed Amendment No. 3 to the Second Amended and Restated Sale and Servicing Agreement involving Horizon Technology Finance Management LLC, U.S. Bank National Association, and KeyBank. The company filed these amendments as exhibits, indicating ongoing updates to its secured loan and servicing structures.
Horizon Technology Finance Corp. has had its 4.875% Notes due 2026 removed from listing and registration on the New York Stock Exchange. The Exchange filed a Form 25, certifying that it met the requirements of Section 12(b) of the Securities Exchange Act and related Rule 12d2-2.
Horizon Technology Finance Corporation and Monroe Capital Corporation are asking stockholders to approve a two‑step transaction in which MRCC will first sell all of its investment assets for cash to Monroe Capital Income Plus Corporation, then merge into HRZN, with HRZN as the surviving BDC.
MRCC will receive cash equal to the fair value of its assets, use it to repay liabilities and distribute undistributed net investment income, then MRCC stockholders will receive HRZN common stock based on a NAV‑driven exchange ratio calculated shortly before closing, with cash paid instead of fractional shares. Separate special meetings on March 13, 2026 will seek HRZN stockholder approval of issuing HRZN shares for the merger and electing one Class I director, and MRCC stockholder approval of both the asset sale and the merger; each board, following independent special committee review and financial advisor opinions, unanimously recommends voting in favor of its respective proposals. The HRZN adviser has agreed to a $4.0 million management and incentive fee waiver over four quarters after closing, and the merger is intended to be tax‑free for MRCC stockholders except for cash in lieu of fractional shares.
Horizon Technology Finance Corporation filed an amended current report to correct an exhibit hyperlink and described a new debt issuance. The company entered into a Fifth Supplemental Indenture with U.S. Bank National Association covering the issuance, offer and sale of $57.5 million in aggregate principal amount of 7.00% Notes due 2028.
The notes mature on December 15, 2028 and pay 7.00% interest semiannually on June 15 and December 15, starting June 15, 2026. They are unsecured, unsubordinated obligations ranking equally with the company’s existing unsecured notes and structurally junior to subsidiary-level debt. The notes can be redeemed before June 15, 2028 at a make-whole price and at par plus accrued interest on or after that date. Horizon intends to use the net proceeds primarily to redeem its outstanding 2026 notes and for general corporate purposes, with temporary use for credit facility repayment or short-term investments.
Horizon Technology Finance Corporation entered into a Fifth Supplemental Indenture to issue $57.5 million of 7.00% Notes due December 15, 2028.
The Notes are unsecured obligations ranking equally with Horizon’s existing unsecured notes and structurally junior to debt at its subsidiaries and under its credit facilities. Interest at 7.00% per year will be paid semiannually on June 15 and December 15, starting June 15, 2026, and the company may redeem the Notes early at specified make-whole or par redemption prices.
Horizon plans to use the net proceeds primarily to redeem its outstanding 2026 Notes and for general corporate purposes, with the option to temporarily repay borrowings under its credit facilities or invest in short-term, high-quality instruments.
Horizon Technology Finance Corporation is offering $57.5 million of unsecured 7.00% notes maturing on December 15, 2028. The notes are priced at 100% of principal, pay interest semi-annually each June 15 and December 15 starting June 15, 2026, and are issued in minimum denominations of $2,000.
The notes rank equally with the company’s other unsecured, unsubordinated debt and are effectively and structurally subordinated to secured and subsidiary-level obligations. Horizon estimates net proceeds of about $56.4 million, which it intends to use to repay indebtedness, including its 4.875% notes due 2026, and for general corporate purposes. The notes are callable at a make-whole premium before June 15, 2028 and at par thereafter, and investors may require repurchase at 100% of principal upon a Change of Control Repurchase Event.