- Horizon Platform Originates $114 Million of New Loans in Q4, Including
$104 Million of New Loans for HRZN
-
- HRZN Grows Loan Portfolio by
$262 Million in 2022 -
-
Horizon Platform Ends 2022 with Committed Backlog of
$255 Million, Including $220 Million in HRZN Commitments -
FARMINGTON, Conn., Jan. 11,
2023 /PRNewswire/ -- Horizon Technology Finance
Corporation (NASDAQ: HRZN) ("HRZN" or the "Company"), 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 fourth quarter ended December 31,
2022 and an update on the lending platform ("Horizon
Platform") of Horizon Technology Finance Management LLC ("HTFM"),
its investment adviser.
"The Horizon Platform ended the year with another quarter of
strong originations and portfolio growth, funding $114 million of loans, including $104 million of loans for HRZN," said
Gerald A. Michaud, President of HRZN
and HTFM. "The power of the Horizon brand was evident throughout
2022, as the Horizon Platform originated over $543 million in new loans, including a
record-high $403 million for the HRZN
portfolio."
"Additionally, the Horizon Platform's committed backlog of debt
investments remained strong at $255
million, including $220
million in HRZN commitments, and the Horizon Platform
pipeline remains robust, providing ample runway to thoughtfully
grow HRZN's portfolio of debt investments," added Mr. Michaud. "As
we enter 2023, we believe the Horizon Platform and HRZN remain well
positioned to deliver additional value to HRZN's shareholders."
Fourth Quarter 2022 Portfolio Update
Originations
During the fourth quarter of 2022, a total of $113.5 million of loans funded through the
Horizon Platform, including ten loans totaling $103.9 million funded by HRZN as follows:
- $45.0 million to a new portfolio
company, Evelo Biosciences, Inc. (NASDAQ: EVLO), a clinical stage
biotechnology company developing a novel platform of orally
delivered medicines acting on the small intestinal axis.
- $10.6 million to a new portfolio
company, an online interior design service, a portion of which was
used to purchase assets of an existing portfolio company of HRZN
which resulted in a partial paydown of HRZN's debt investment in
such existing portfolio company.
- $10.0 million to a new portfolio
company, Groundspeed Analytics, Inc., a developer of an AI platform
that captures, structures, and delivers complete risk data to
commercial P&C insurance carriers.
- $10.0 million to an existing
portfolio company, Magnolia Medical Technologies, Inc., a developer
of an FDA-cleared high-precision blood culture collection medical
device.
- $7.5 million to an existing
portfolio company, Divergent Technologies, Inc., a creator of an
innovative global manufacturing infrastructure platform for the
automotive industry.
- $7.5 million to an existing
portfolio company, Soli Organic Inc., a leading grower and marketer
of fresh organic culinary herbs, providing sustainable,
USDA-certified organic, regionally grown produce to retailers.
- $7.0 million to a new 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.
- $2.5 million to an existing
portfolio company, Sonex Health, Inc., a developer of technology,
education and training programs for ultrasound guided
procedures.
- $2.5 million to an existing
portfolio company, a developer of next generation microbial
solutions for both companion and livestock animals.
- $1.3 million to an existing
portfolio company, a data platform that enables marketers to build
personalized digital experiences and 1-to-1 marketing campaigns by
focusing on behavioral data.
Liquidity Events and Partial Paydowns
HRZN experienced liquidity or partial paydown events from two
portfolio companies in the fourth quarter of 2022, including
principal prepayments of $8.2
million, compared to $22.0
million of principal prepayments during the third quarter of
2022:
- In November, LogicBio Therapeutics, Inc. prepaid its
outstanding principal balance of $2.6
million on its venture loan, plus interest, end-of-term
payment and prepayment fee. HRZN continues to hold warrants in the
company.
- In December, HRZN received a paydown of $5.6 million on its venture loan to Interior
Define, Inc. from the sale of certain assets of Interior Define,
Inc. to a new borrower of HRZN, whose purchase of such assets was
financed by HRZN with a new debt investment.
Principal Payments Received
During the fourth quarter of 2022, HRZN received regularly
scheduled principal payments on investments totaling $4.1 million, compared to regularly scheduled
principal payments totaling $4.5
million during the third quarter of 2022.
Commitments
During the quarter ended December 31,
2022, HRZN closed new loan commitments totaling $102.6 million to five companies, compared to new
loan commitments of $156.0 million to
eight companies in the third quarter of 2022. Across the Horizon
Platform, an additional $3.4 million
of unfunded loan commitments were closed.
Pipeline and Term Sheets
As of December 31, 2022, HRZN's
unfunded loan approvals and commitments ("Committed Backlog") were
$220.0 million to 18 companies. This
compares to a Committed Backlog of $252.0
million to 26 companies at HRZN as of September 30, 2022. 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 $35.0 million of unfunded loan approvals and
commitments.
During the quarter, HTFM received signed term sheets that are in
the approval process, which may result in the Horizon Platform
providing up to an aggregate of $30.0
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 December 31, 2022, HRZN held
a portfolio of warrant and equity positions in 99 portfolio
companies, including 82 private companies, which provides the
potential for future additional returns to HRZN's shareholders.
About Horizon Technology Finance
Horizon Technology Finance Corporation (NASDAQ: HRZN) 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 in Austin,
Texas, Chicago, Illinois,
Reston, Virginia and Portland, Maine. 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 Horizon'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.
Contacts:
Investor Relations:
ICR
Garrett Edson
ir@horizontechfinance.com
(860) 284-6450
Media Relations:
ICR
Chris Gillick
HorizonPR@icrinc.com
(646) 677-1819
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SOURCE Horizon Technology Finance Corporation