FARMINGTON, Conn., Oct. 9, 2019 /PRNewswire/ -- 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 sustainability
industries, today provided its portfolio update for the third
quarter ended September 30, 2019.
"The momentum in the venture debt market we experienced during
the first half of 2019 continued into the third quarter, as we
successfully grew our portfolio for a sixth consecutive quarter by
originating $46 million of loans to
new and existing portfolio companies," said Gerald A. Michaud, President of Horizon. "In
addition, we continued to benefit from the strength of our
predictive pricing strategy as three of our portfolio companies
prepaid their loans, providing additional returns through
accelerated income and fees. During the quarter, we also completed
a successful securitization which increased our overall lending
capacity and expanded our opportunity to further grow our high
quality, premium-priced, venture debt portfolio. We remain
committed, and, we believe, well positioned, to deliver our
shareholders long-term value."
Originations
Horizon funded six loans during the third quarter of 2019
totaling $46.6 million:
- $20.0 million to a new portfolio
company, CVRx, Inc., a developer of a premarket FDA-approved
medical device addressing advanced cardiovascular diseases.
- $11.6 million to an existing
portfolio company, MacuLogix, Inc., a medical device company in the
optometry and ophthalmology industry.
- $5.0 million to a new portfolio
company, LogicBio Therapeutics, Inc., (NASDAQ: LOGC), a genome
editing company focused on developing medicines to durably treat
rare diseases.
- $4.8 million to an existing
portfolio company focused on the late-stage development and
commercialization of drugs to treat cardiovascular diseases.
- $2.7 million to an existing
portfolio company, IntelePeer Holdings, Inc., a leading provider of
business communications.
- $2.5 million to an existing
portfolio company, Bridge2 Solutions, LLC, a SaaS platform
technology company providing innovative solutions to drive
engagement and loyalty between brands and their consumers.
Liquidity Events
Horizon experienced liquidity events from three portfolio
companies in the third quarter of 2019, encompassing outstanding
principal prepayments of $28.5
million, compared to $31.5
million during the second quarter of 2019:
- In September, Catasys, Inc. ("Catasys") prepaid its outstanding
principal balance of $15.0 million on
its venture loan, plus interest, end-of-term payment, prepayment
fee and a revenue-based payment. Horizon continues to hold warrants
in Catasys.
- In September, Food52 Inc. ("Food52") prepaid its outstanding
principal balance of $6.0 million on
its venture loan, plus interest, end-of-term payment and prepayment
fee. Horizon will also receive proceeds of $500,000 from the termination of its warrants in
Food52.
- In September, with the proceeds of a new loan from Horizon,
MacuLogix, Inc. ("MacuLogix") prepaid its previously outstanding
principal balance of $7.5 million on
its venture loan, plus interest and end-of-term payment. Horizon
continues to hold warrants in MacuLogix.
Joint Venture Activity
During the third quarter of 2019, Horizon transferred
$4.0 million of venture loans of an
existing portfolio company, a SaaS marketing data and CRM platform
specialized for the hospitality industry, to Horizon Secured Loan
Fund I LLC, its joint venture.
Principal Payments Received
During the third quarter of 2019, Horizon received regularly
scheduled principal payments on investments totaling $3.7 million, compared to regularly scheduled
principal payments totaling $5.1
million during the second quarter of 2019.
Commitments
During the third quarter ended September
30, 2019, Horizon closed new loan commitments totaling
$48.5 million to five companies,
compared to new loan commitments of $78.6
million to seven companies in the second quarter of
2019.
Pipeline
As of September 30, 2019,
Horizon's unfunded loan approvals and commitments ("Committed
Backlog"), all priced at floating interest rates, were $62.8 million to ten companies. This compares to
a Committed Backlog of $58.0 million
to ten companies as of June 30, 2019.
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.
Capital Markets Activity, Warrant and Equity
Portfolio
As of September 30, 2019, Horizon
held a portfolio of warrant and equity positions in 74 portfolio
companies, including 61 private companies, which provides the
potential for future additional returns to Horizon'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.
Headquartered in Farmington,
Connecticut, Horizon also has regional offices in
Pleasanton, California,
Reston, Virginia and Boston, Massachusetts. To learn more, please
visit www.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
Brian Ruby
brian.ruby@icrinc.com
(203) 682-8268
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SOURCE Horizon Technology Finance Corporation