Horizon Technology Finance Provides Investment Portfolio Update for Fourth Quarter 2011
06 January 2012 - 12:30AM
Horizon Technology Finance Corporation (Nasdaq:HRZN) (the "Company"
or "Horizon"), a leading specialty finance company that provides
secured loans to venture capital and private equity backed
development-stage companies in the technology, life science,
healthcare information and services and clean-tech industries,
today provided a portfolio update for the fourth quarter of 2011.
Gerald A. Michaud, President of Horizon, commented, "We saw a
marked increase in investment activity in the fourth quarter of
2011 compared to the third quarter of 2011, adding assets to our
high quality seasoned portfolio. Our new loan investments of
approximately $20 million in the fourth quarter can be attributed
to a combination of our improved liquidity resulting from our new
credit facility, our continued focus on new originations, and
year-end market demand for our loan products. Our investment
activity in the fourth quarter showed, once again, how quickly we
can deploy our available capital into high quality earning
assets."
New Loans Funded
Gross new loan investments during the fourth quarter of 2011
totaled $19.5 million. There were no refinanced balances in
the fourth quarter. During the fourth quarter of 2011, Horizon
provided funding to the following two new portfolio companies and
five existing portfolio companies:
- Aurora Algae, Inc., received a $2.5 million
loan investment from Horizon. Aurora Algae is a producer of
high-performance, premium algae-based products for the
pharmaceutical, nutrition, aquaculture and fuels markets.
- N30 Pharmaceuticals LLC, an existing portfolio
company, received a $2.5 million loan investment from
Horizon. N30 Pharma focuses on the discovery and development
of proprietary drugs that provide therapeutic advantage over
current treatment of major human diseases such as asthma, COPD and
IBD.
- Sunesis Pharmaceuticals, Inc., (Nasdaq:SNSS),
received a $2 million loan investment from Horizon. Sunesis is
a biopharmaceutical company focused on the development and
commercialization of new oncology therapeutics.
- Tigo Energy, Inc., an existing portfolio
company, received an $850,000 loan investment from
Horizon. Tigo focuses on applying innovative technologies to
the solar photovoltaic space, delivering more energy, active
management and enhanced safety for utility, commercial and
residential solar arrays.
- An existing portfolio company received a $2.7 million loan
investment from Horizon. This company is a biopharmaceutical
company focused on discovering, developing and commercializing
novel small-molecule therapeutics derived from its boron chemistry
platform.
- An existing portfolio company received a $7 million loan
investment from Horizon. This company is a specialty
pharmaceutical company focused on developing and commercializing
products for the treatment of central nervous system (CNS)
disorders.
- An existing portfolio company received a $2 million loan
investment from Horizon. This company provides a wide array of
optical and IP networking solutions for submarine, long-haul,
regional, network applications and IP networking solutions for
enterprise applications.
Commitments
During the quarter ended December 31, 2011, Horizon closed loan
commitments totaling $21.5 million, plus warrants, to two new
companies and two existing portfolio company. This compares to
loan commitments totaling $4 million for the quarter ended
September 30, 2011.
Pipeline
As of December 31, 2011, Horizon's unfunded loan approvals and
commitments ("Committed Backlog") totaled $22.5 million to five
companies. This compares to a Committed Backlog of $18.7 million as
of September 30, 2011. While Horizon's portfolio companies have
discretion whether to draw down such commitments, in some cases,
the right of a company to draw down its commitment is subject to
the portfolio company achieving specific milestones (e.g. an
additional capital issuance or the completion of a clinical
trial).
About Horizon Technology Finance
Corporation
Horizon Technology Finance Corporation is a closed-end
investment company that has elected to be treated as a business
development company under the Investment Company Act of 1940. The
Company provides secured loans to development-stage companies
backed by established venture capital and private equity firms
within the technology, life science, healthcare information and
services, and clean-tech industries. The investment objective of
Horizon Technology Finance is to maximize total risk-adjusted
returns by generating current income from a portfolio of directly
originated secured loans as well as capital appreciation from
warrants to purchase the equity of portfolio companies.
Headquartered in Farmington, CT, with a regional office in Walnut
Creek, CA, the Company is externally managed by its investment
advisor, Horizon Technology Finance Management LLC. To learn more,
please visit horizontechnologyfinancecorp.com.
Forward-Looking Statements
Statements included herein may constitute "forward-looking
statements," which relate to future events or our future
performance or financial condition. These statements 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. The
Company 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.
CONTACT: Horizon Technology Finance Corporation
Christopher M. Mathieu
Chief Financial Officer
(860) 676-8653
chris@horizontechfinance.com
Investor Relations and Media Contacts:
The IGB Group
Leon Berman / Michael Cimini
(212) 477-8438 / (212) 477-8261
lberman@igbir.com / mcimini@igbir.com
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