Horizon Technology Finance Announces Monthly Distributions for October, November and December 2024 Totaling $0.33 per Share

Rhea-AI Summary

Horizon Technology Finance (NASDAQ: HRZN) has announced monthly cash distributions of $0.11 per share for October, November, and December 2024, totaling $0.33 per share. The company, which provides secured loans to venture capital-backed companies in technology, life science, healthcare information and services, and sustainability industries, has paid a total of $274 million in distributions since its 2010 IPO. The distributions will be payable on October 16, November 14, and December 13, 2024, with corresponding ex-dividend and record dates. Horizon maintains a Dividend Reinvestment Plan (DRIP) for stockholders who haven't opted out, allowing for automatic reinvestment of distributions into additional shares of common stock.

Positive

• Consistent monthly cash distributions of $0.11 per share for Q4 2024
• Total distributions of $0.33 per share for the quarter
• Long-term track record of shareholder returns, with $274 million paid since 2010 IPO
• Dividend Reinvestment Plan (DRIP) available for shareholders

Negative

• None.

Insights

Financial Analyst

Horizon Technology Finance 's announcement of monthly distributions for Q4 2024 is a routine update that provides stability and predictability for income-focused investors. The consistent $0.11 per share monthly dividend demonstrates the company's commitment to returning value to shareholders.

However, it's important to note that this announcement doesn't provide new information about the company's financial health or performance. The $0.33 total distribution for the quarter maintains the current dividend level, which has been in place since January 2023. This consistency could be viewed positively as it suggests management's confidence in the company's ability to sustain its dividend policy.

For context, Horizon's business model as a specialty finance company providing secured loans to venture capital-backed companies in high-growth sectors like technology and life sciences can be both lucrative and risky. The stability of dividends implies that the company's loan portfolio is performing adequately to support these payouts.

Investors should be aware that the actual taxable income available for distribution may differ from consolidated net income due to various accounting factors. This means that the sustainability of the dividend should be assessed in conjunction with the company's earnings reports and loan portfolio performance.

The Dividend Reinvestment Plan (DRIP) offered by Horizon is a standard feature that allows for automatic reinvestment of dividends, potentially benefiting long-term investors through compounding. However, the company's flexibility to issue new shares or purchase from the open market for DRIP could have dilutive effects or impact the stock price, depending on which option is chosen.

In conclusion, while this announcement provides clarity on near-term income for shareholders, it doesn't significantly alter the investment thesis for Horizon. Investors should continue to monitor the company's loan originations, credit quality and overall financial performance to gauge the long-term sustainability of these distributions.

FARMINGTON, Conn.--(BUSINESS WIRE)-- Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”) (the “Company”), 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, announced today that its board of directors has declared monthly cash distributions of $0.11 per share, payable in each of October, November and December 2024. The following tables show these distributions, payable as set forth in the tables below, total $0.33 per share. Since its 2010 initial public offering, Horizon has paid a total of $274 million in distributions to its shareholders.

Monthly Distributions Declared in Third Quarter 2024

Ex-Dividend Date	Record Date	Payment Date	Amount per Share
September 16, 2024	September 16, 2024	October 16, 2024	$0.11
October 17, 2024	October 17, 2024	November 14, 2024	$0.11
November 15, 2024	November 15, 2024	December 13, 2024	$0.11
		Total:	$0.33

When declaring distributions, Horizon’s board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.

Horizon maintains a “Dividend Reinvestment Plan” (“DRIP”) that provides for the reinvestment of distributions on behalf of its stockholders, unless a stockholder has elected to receive distributions in cash. As a result, if Horizon declares a distribution, its stockholders who have not “opted out” of the DRIP by the distribution record date will have their distribution automatically reinvested into additional shares of Horizon’s common stock. Horizon has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly-issued shares will be valued based upon the final closing price of Horizon’s common stock on a specified valuation date for each distribution as determined by Horizon’s board of directors. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs, which are borne by Horizon.

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 $19.5 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240730414975/en/

Investor Relations:

ICR

Garrett Edson

ir@horizontechfinance.com

(646) 200-8885

Media Relations:

ICR

Chris Gillick

HorizonPR@icrinc.com

(646) 677-1819

Source: Horizon Technology Finance Corporation

FAQ

What is the amount of Horizon Technology Finance's (HRZN) monthly distribution for Q4 2024?

Horizon Technology Finance (HRZN) has declared monthly cash distributions of $0.11 per share for October, November, and December 2024.

When will Horizon Technology Finance (HRZN) pay its Q4 2024 distributions?

HRZN will pay its Q4 2024 distributions on October 16, November 14, and December 13, 2024.

How much has Horizon Technology Finance (HRZN) paid in total distributions since its IPO?

Since its 2010 initial public offering, Horizon Technology Finance (HRZN) has paid a total of $274 million in distributions to its shareholders.

What is the Dividend Reinvestment Plan (DRIP) offered by Horizon Technology Finance (HRZN)?

HRZN's DRIP allows stockholders to automatically reinvest their distributions into additional shares of Horizon's common stock, unless they have opted out of the plan.