Horizon Technology Finance Provides Investment Portfolio Update for Third Quarter 2016
14 October 2016 - 7:45AM
Horizon Technology Finance Corporation (NASDAQ:HRZN) (“Horizon”), 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
cleantech industries, today provided a portfolio update for the
third quarter of 2016.
“During the third quarter, we experienced
liquidity events from three portfolio companies with positive
outcomes from prepayments and M&A activity,” said Gerald A.
Michaud, President of Horizon. “In addition, in the third quarter
we funded two venture loans to new portfolio companies, while
increasing our committed backlog heading into the fourth
quarter.”
New Loans Funded
Horizon funded two new loans in the third
quarter of 2016 totaling $13.0 million to the following portfolio
companies:
- $7.0 million to a new portfolio company, an online provider of
apparel and accessory rentals to women in the United
States.
- $6.0 million to a new portfolio company, a provider of a
cloud-based, iPad point-of-sale system for small businesses.
Liquidity Events
During the quarter ended September 30, 2016,
Horizon experienced liquidity events from three portfolio
companies. Liquidity events for Horizon may consist of the sale of
warrants or equity in portfolio companies, loan prepayments, sale
of owned assets or receipt of success fees.
In July, mBlox, Inc. (“mBlox”) was acquired by
CLX Communications AB. In connection with the acquisition, mBlox
prepaid the outstanding principal balance of $8.6 million on two of
its venture loans, plus interest, end-of-term payments, prepayment
fees and a success fee.
In September, LifePrint Group, Inc.
(“LifePrint”) prepaid the outstanding principal balance of $1.6
million on its venture loan, plus interest, end-of-term payment and
prepayment fee. Horizon continues to hold warrants in
LifePrint.
In September, Recondo Technology, Inc.
(“Recondo”) prepaid the outstanding principal balance of $6.8
million on its venture loan, plus interest, end-of-term payment and
prepayment fee. Horizon continues to hold warrants in Recondo.
Refinanced Principal Balances, Early Principal Payoffs,
and Principal Payments Received
As noted above, Horizon experienced early
pay-offs during the third quarter of 2016 totaling $17.0 million,
compared to early pay-offs totaling $8.6 million during the second
quarter of 2016. During the third quarter of 2016, Horizon received
regularly scheduled principal payments on investments totaling
$10.3 million compared to regularly scheduled principal payments
totaling $13.8 million during the second quarter of 2016.
Commitments
During the quarter ended September 30, 2016,
Horizon closed new loan commitments totaling $17.0 million to two
companies, similar to the quarter ended June 30, 2016, wherein
Horizon closed new loan commitments totaling $17.5 million to four
companies.
Pipeline
As of September 30, 2016, Horizon's unfunded
loan approvals and commitments (“Committed Backlog”), all priced at
floating interest rates, were $19.5 million to three companies.
This compares to a Committed Backlog of $3.0 million to one company
as of June 30, 2016. While Horizon's portfolio companies have
discretion whether to draw down such commitments, the right of a
portfolio company to draw down its commitment is often subject to
achievement of specific milestones and other conditions to
borrowing.
Warrant and Equity
Portfolio
As of September 30, 2016, Horizon held a
portfolio of warrant and equity positions in 87 portfolio
companies, including 74 private companies, which provides the
potential for future additional returns to Horizon's
shareholders.
About Horizon Technology
FinanceHorizon Technology Finance Corporation 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
cleantech 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.
Headquartered in Farmington, Connecticut, Horizon has regional
offices in Walnut Creek, California and Reston, Virginia. Horizon's
common stock trades on the NASDAQ Global Select Market under the
ticker symbol "HRZN". To learn more, please visit
www.horizontechfinance.com.
Forward-Looking
StatementsStatements 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 our 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:
Horizon Technology Finance
Daniel R. Trolio
Vice President of Finance and
Interim Chief Financial Officer
(860) 674-9977
dtrolio@horizontechfinance.com
Investor Relations and Media Contacts:
The IGB Group
Scott Eckstein / Leon Berman
(212) 477-8261 / (212) 477-8438
seckstein@igbir.com / lberman@igbir.com
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