Horizon Technology Finance Strengthens Capital Resources by Increasing Capacity of Credit Facility to $200 Million

Rhea-AI Summary

Horizon Technology Finance Corporation (NASDAQ: HRZN) has announced an amendment to its senior secured debt facility with a large U.S. insurance company, increasing the commitment by $100 million to a total of $200 million in secured notes. The investment period has been extended to June 2023 and the maturity to June 2028. The new terms also lower the interest rate margin on borrowings above $100 million. This strategic move aims to enhance Horizon's capital resources and expand its lending capacity, allowing further growth in its venture debt portfolio.

Positive

• Increased credit facility commitment by $100 million to $200 million.
• Extension of investment period to June 2023 and maturity to June 2028.
• Reduction in interest rate margin, enhancing cost efficiency.

Negative

• None.

FARMINGTON, Conn., Feb. 28, 2022 /PRNewswire/ -- Horizon Technology Finance Corporation (NASDAQ: HRZN) ("Horizon" 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 announced that Horizon Secured Loan Fund I LLC, Horizon's wholly-owned subsidiary ("HSLF"), has amended its senior secured debt facility with a large U.S. based insurance company. Under the amended agreement, the commitment to HSLF has increased by $100 million to enable HSLF to issue up to $200 million of secured notes.

The amendment to the credit facility extends the investment period to June 2023 and the maturity date to June 2028. In addition, the amendment, among other things, reduces the applicable margin used to calculate the credit facility's interest rate on the Company's borrowings above $100 million. Such borrowings will be priced at the three-year USD mid-market swap rate plus 3.00%. The facility is collateralized by certain of the Company's assets.

"We are pleased to further strengthen our capital resources and expand our lending capacity, enabling us to further grow our venture debt portfolio while reducing our cost of capital," said Daniel R. Trolio, Executive Vice President and Chief Financial Officer of Horizon. "We look forward to utilizing this facility to deploy capital resources more efficiently and to continue diversifying our sources of debt. We believe we remain strongly positioned to continue delivering value to our 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 HRZN 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 Technology Finance Management LLC is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia. 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 the Company'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

 

View original content:https://www.prnewswire.com/news-releases/horizon-technology-finance-strengthens-capital-resources-by-increasing-capacity-of-credit-facility-to-200-million-301491283.html

SOURCE Horizon Technology Finance Corporation

FAQ

What recent amendment did Horizon Technology Finance (HRZN) make to its debt facility?

Horizon Technology Finance amended its senior secured debt facility, increasing the commitment by $100 million to a total of $200 million.

What are the new terms of the debt facility for HRZN?

The investment period is extended to June 2023, and the maturity date is set for June 2028.

How will the amendment to the credit facility impact HRZN's capital resources?

The amendment strengthens Horizon's capital resources, allowing for expanded lending capacity and growth in its venture debt portfolio.

What is the interest rate margin adjustment in HRZN's debt facility?

The applicable margin for borrowings above $100 million is reduced to the three-year USD mid-market swap rate plus 3.00%.

When was the press release announcing HRZN's debt facility amendment issued?

The press release was issued on February 28, 2022.