- HRZN Originates $33.5 Million of New Loans in
Q1 -
- HRZN Ends Quarter with Committed Backlog of
$168 Million -
Horizon Technology Finance Corporation (NASDAQ: HRZN)
(“Horizon”), an affiliate of Monroe Capital, and a leading
specialty finance company that provides capital in the form of
secured loans to venture capital-backed companies in the
technology, life science, healthcare information and services, and
sustainability industries, today provided its portfolio update for
the first quarter ended March 31, 2024 and an update on the lending
platform (“Horizon Platform”) of Horizon Technology Finance
Management LLC (“HTFM”), its investment adviser.
“HRZN funded $34 million in new loans in the first quarter, as
we continued to monitor the changing venture environment and
maintained our cautious approach,” said Gerald A. Michaud,
President of HRZN and HTFM. “We are now seeing some green shoots in
our markets which we find encouraging. While we watch these
developments, we continue to maintain a significant committed
backlog of debt investments, which totaled $168 million as of March
31. Our backlog should provide a solid foundation for new debt
investments to existing and new portfolio companies in the quarters
ahead.”
“During the quarter, we also received $20 million in loan
payoffs and partial paydowns, generating accelerated income and
prepayment fees, which added to our regular investment income from
interest on our outstanding debt investments,” added Mr. Michaud.
“Looking forward, we believe HRZN remains well positioned to
prudently grow its portfolio of debt investments, while delivering
additional value to HRZN’s shareholders.”
First Quarter 2024 Portfolio Update
Originations
During the first quarter of 2024, HRZN funded a total of $33.5
million of loans, as follows:
- $15.0 million to an existing portfolio company, Sonex Health,
Inc., a developer of technology, education and training programs
for ultrasound guided procedures.
- $14.0 million to an existing portfolio company, Ceribell, Inc.,
a developer of an FDA-cleared rapid response electroencephalography
(EEG) medical device, which measures the amount of electrical
activity in different regions of the brain in order to diagnose
seizures.
- $2.5 million to an existing portfolio company, a developer of a
cloud-native software platform for the property and casualty
insurance segment.
- $1.8 million to an existing portfolio company, Nexii Building
Solutions Inc., a green construction technology company focused on
creating environmentally-friendly, durable, cost-efficient and
disaster-resilient buildings.
- $0.2 million to an existing portfolio company, Robin
Healthcare, Inc., a developer of an AI device that silently
observes healthcare visits, extracts data, then builds and uploads
clinical notes to a patient’s electronic health record.
Liquidity Events and Partial Paydowns
HRZN experienced liquidity events from three portfolio companies
in the first quarter of 2024, including principal prepayments and
partial paydowns of $19.8 million, compared to $48.3 million of
principal prepayments and partial paydowns during the fourth
quarter of 2023:
- In February, with the proceeds of a new loan from the Horizon
Platform, Ceribell, Inc. (“Ceribell”) paid its outstanding
principal balance of $11.2 million on its venture loan, plus
interest and end-of-term payment. HRZN continues to hold warrants
in Ceribell.
- In March, HRZN received a principal paydown of $1.1 million on
its venture loans to NextCar Holding Company, Inc. (“NextCar”).
HRZN continues to hold warrants in NextCar.
- In March, Engage3, LLC paid its outstanding principal balance
of $7.5 million on its venture loan, plus interest, end-of-term
payment and prepayment fee.
Principal Payments Received
During the first quarter of 2024, HRZN received regularly
scheduled principal payments on investments totaling $10.5 million,
compared to regularly scheduled principal payments totaling $13.2
million during the fourth quarter of 2023.
Commitments
During the quarter ended March 31, 2024, HRZN closed new loan
commitments totaling $37.5 million to three companies, compared to
new loan commitments of $89.4 million to four companies in the
fourth quarter of 2023.
Pipeline and Term Sheets
As of March 31, 2024, HRZN’s unfunded loan approvals and
commitments (“Committed Backlog”) were $168.2 million to 14
companies. This compares to a Committed Backlog of $218.3 million
to 15 companies at HRZN as of December 31, 2023. HRZN’s portfolio
companies have discretion whether to draw down such commitments and
the right of a portfolio company to draw down its commitment is
often subject to achievement of specific milestones and other
conditions to borrowing. Accordingly, there is no assurance that
any or all of these transactions will be funded by HRZN. Across the
Horizon Platform, the quarter ended with an additional $4.7 million
of unfunded loan approvals and commitments.
During the quarter, HTFM received a signed term sheet that is in
the approval process, which may result in the Horizon Platform
providing up to an aggregate of $10.0 million of new debt
investments. These opportunities are subject to underwriting
conditions including, but not limited to, the completion of due
diligence, negotiation of definitive documentation and investment
committee approval, as well as compliance with HTFM’s allocation
policy. Accordingly, there is no assurance that any or all of these
transactions will be completed or funded by HRZN.
Warrant and Equity Portfolio
As of March 31, 2024, HRZN held a portfolio of warrant and
equity positions in 99 portfolio companies, including 87 private
companies, which provides the potential for future additional
returns to HRZN’s shareholders.
About Horizon Technology Finance
Horizon Technology Finance Corporation (NASDAQ: HRZN),
externally managed by Horizon Technology Finance Management LLC, an
affiliate of Monroe Capital, is a leading specialty finance company
that provides capital in the form of secured loans to venture
capital backed companies in the technology, life science,
healthcare information and services, and sustainability industries.
The investment objective of Horizon is to maximize its investment
portfolio’s return by generating current income from the debt
investments it makes and capital appreciation from the warrants it
receives when making such debt investments. Horizon is
headquartered in Farmington, Connecticut, with a regional office in
Pleasanton, California, and investment professionals located
throughout the U.S. Monroe Capital is an $18 billion asset
management firm specializing in private credit markets across
various strategies, including direct lending, technology finance,
venture debt, opportunistic, structured credit, real estate and
equity. To learn more, please visit horizontechfinance.com.
Forward-Looking Statements
Statements included herein may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Statements other than statements of historical
facts included in this press release may constitute forward-looking
statements and are not guarantees of future performance, condition
or results and involve a number of risks and uncertainties. Actual
results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those
described from time to time in the Company’s filings with the
Securities and Exchange Commission. Horizon undertakes no duty to
update any forward-looking statement made herein. All
forward-looking statements speak only as of the date of this press
release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240410823499/en/
Investor Relations: ICR Garrett Edson ir@horizontechfinance.com
(646) 200-8885
Media Relations: ICR Chris Gillick HorizonPR@icrinc.com (646)
677-1819
Horizon Technology Finance (NASDAQ:HRZN)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Horizon Technology Finance (NASDAQ:HRZN)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
