FARMINGTON, Conn., April 7, 2021 / PRNewswire / – Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”, “We”, “Our” or the “Company”), a leading specialist finance company that provides capital in the form of guaranteed loans to venture capital backed companies in the areas of technology, life sciences, information and health services, and sustainability industries, today presented its portfolio update for the first quarter ended March 31, 2021.
“The momentum that Horizon saw in terms of originations towards the end of 2020 did well in the first quarter, as Horizon again increased its portfolio, $ 51 million loans to new and existing portfolio companies, ”said Gerald A. Michaud, President of Horizon. “The increased visibility and capability of Horizon’s brand and subprime lending platform and its investment advisor, Horizon Technology Finance Management LLC (“ HTFM ”), have helped Horizon attract investment opportunities. quality investment in emerging companies with unique and innovative technologies, competent management and growth potential. Horizon also received $ 17 million prepayments of loans during the quarter, which accelerated Horizon’s revenue, further validated its predictive pricing strategy and included the full repayment of a loan on non-accrual. Horizon continues to maintain a strong order book and, with HTFM’s large portfolio of new investment opportunities, we plan to further drive portfolio growth and added value for our shareholders. ”
First quarter 2021 portfolio update
During the first quarter of 2021, a total of $ 69.5 million of loans financed via the HTFM platform, including eight loans totaling $ 51.0 million funded by Horizon as follows:
- $ 10.0 million to a new holding company, an oral health company that designs and supplies professional dental products and services.
- $ 7.5 million to a new holding company, a provider of end-to-end hardware and software contactless catering solutions.
- $ 7.0 million to a new holding company, a developer of predictive analytics solutions for supply chain and logistics professionals.
- $ 7.0 million to an existing holding company, Getaround, Inc., a peer-to-peer car sharing platform.
- $ 6.0 million to a new holding company, Primary Kids, Inc., an online brand of baby and children’s clothing.
- $ 5.0 million to a new holding company, Clara Foods, Inc., a developer of animal-free protein as ingredients for food and drink.
- $ 5.0 million to an existing holding company, a developer of a software-defined composable infrastructure platform.
- $ 3.5 million to a new holding company, InfoBionic, Inc., a developer of an FDA-approved SaaS remote monitoring system to help treat cardiac arrhythmia.
Horizon experienced liquidity events from three portfolio companies in the first quarter of 2021, including early principal repayments of $ 17.2 million and justify the totaling product $ 0.8 million, compared to $ 17.3 million prepayments of principal and $ 1.4 million success fees, warrants proceeds and equity during the fourth quarter of 2020:
- In February, Horizon received revenue totaling $ 0.8 million when exercising and selling warrants, in OnTrak, Inc.
- In March, a holding company prepaid its outstanding principal balance of $ 9.7 million on his subprime loan, plus interest, end-of-term payment and prepayment charges. Horizon continues to hold warrants in the company.
- In March, IgnitionOne, Inc. prepaid its outstanding principal balance of $ 7.5 million on his subprime loan, plus interest, end-of-term payment and prepayment charges.
Main payments received
During the first quarter of 2021, Horizon received regular capital payments on investments totaling $ 4.7 million, compared to regularly scheduled principal payments totaling $ 4.5 million during the fourth quarter of 2020.
During the first quarter ended March 31, 2021, Horizon closed new loan commitments totaling $ 48.5 million to six companies, in relation to new commitments of $ 103.1 million to eight companies in the fourth quarter of 2020.
Pipeline and term sheets
From March 31, 2021, Horizon’s unfunded loan approvals and commitments (“committed backlog”), all valued at variable interest rates, were $ 94.0 million to 18 companies. This compares to an engaged Backlog of $ 106.5 million to 16 companies as of December 31, 2020. While Horizon’s portfolio companies have the discretion to withdraw such commitments, a portfolio company’s right to reduce its liability is often contingent on the completion of specific milestones and other borrowing conditions. .
During the quarter, HTFM signed condition sheets to potentially provide up to $ 92.0 million new investments in debt and ended the quarter with $ 102.5 million unfunded loan approvals and commitments. These opportunities are subject to subscription conditions including, but not limited to, performance of due diligence, negotiation of final documentation and approval of the investment committee, as well as compliance with the allocation policy. by HTFM. Therefore, there can be no assurance that any or all of these transactions will be entered into or funded by Horizon.
Capital Markets Activity – Warrants and Equity Portfolio
From March 31, 2021, Horizon held a portfolio of warrants and equity securities in 68 portfolio companies, including 60 private companies, which offers potential for additional future returns to Horizon shareholders.
About Horizon Technology Finance
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company providing guaranteed loan capital to venture-backed companies in the technology, life sciences, information and healthcare industries and sustainability. Horizon’s investment objective is to maximize the return on its investment portfolio by generating current income from the debt investments it makes and capital appreciation from the warrants it receives. when making these investments in debt. Horizon is headquartered at Farmington, Connecticut, with a regional office in Pleasanton, Californiaand investment professionals located in Portland, Maine, Austin, Texasand Reston, Virginia. For more information, please visit www.horizontechfinance.com.
Statements included in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact included in this press release may constitute forward-looking statements and are not no guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from forward-looking statements due to a number of factors, including those described from time to time in documents filed by Horizon with the Securities and Exchange Commission. Horizon assumes no obligation to update any forward-looking statements made herein. All forward-looking statements speak only as of the date of this press release.
SOURCE Horizon Technology Finance Corporation