Where can I get business financing?

Horizon Technology Finance Provides Investment Portfolio Update Increases Portfolio Size with $24 Million in Loan Originations; Grows Committed Backlog to $47 Million

October 10, 2018

FARMINGTON, Conn., Oct. 10, 2018 /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 cleantech industries, today provided a portfolio update for the third quarter ended September 30, 2018.

“During the third quarter, we experienced solid investment activity, increasing the size of our portfolio and expanding our committed backlog for the second consecutive quarter,” said Gerald A. Michaud, President of Horizon. “Our success funding seven loans, totaling more than $24 million, and growing our committed backlog to $47 million underscores the strong demand for our venture debt products to growing life science and technology companies. We believe Horizon will continue to benefit from a robust pipeline of investment opportunities and is well positioned to deliver long-term, disciplined portfolio growth, while ensuring credit quality remains strong.”

New Loans Funded

Horizon funded seven new loans in the third quarter of 2018 totaling $24.2 million to the following portfolio companies:

$6.0 million to a new portfolio company, CSA Medical, Inc., a developer of novel, patent protected cryotherapy medical devices.
$5.0 million to a portfolio company focused on the late-stage development and commercialization of drugs to treat cardiovascular diseases.
$3.8 million to an existing portfolio company, HealthEdge Software, Inc., a provider of next-generation technology products to the health insurance market.
$3.8 million to a new portfolio company, MacuLogix, Inc., a medical device company in the optometry and ophthalmology industry.
$3.0 million to an existing portfolio company, IntelePeer Cloud Communications LLC, a provider of business communications including cloud-based Unified Communications, cloud contact center, and enterprise voice services.
$2.5 million to an existing portfolio company, Catasys, Inc., a leading AI and technology-enabled healthcare company.
$0.2 million to an existing portfolio company, Decisyon, Inc., a provider of a visual app development environment to accelerate the design, development, and deployment of IoT solutions, without requiring coding.
Liquidity Events

During the quarter ended September 30, 2018, Horizon experienced liquidity events from four portfolio companies. Liquidity events for Horizon may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.

In July, WebLinc Corporation (“WebLinc”) prepaid the outstanding principal balance of $3.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. Horizon continues to hold warrants in WebLinc.

In August, SavingStar, Inc. prepaid the outstanding principal balance of $3.6 million on its venture loan, plus interest, end-of-term payment and prepayment fee.

In August, eAsic Corporation (“eAsic”) closed a sale transaction from which Horizon will receive proceeds of approximately $0.1 million in connection with Horizon’s surrender of its warrants in eAsic.

In September, Spring CM, Inc. (“SpringCM”) closed a sale transaction from which Horizon received proceeds of approximately $0.2 million in connection with Horizon’s termination of its warrants in SpringCM.

Refinanced Principal Balances, Early Principal Payoffs, and Principal Payments Received

As noted above, Horizon experienced early pay-offs during the third quarter of 2018 totaling $6.6 million, compared to early pay-offs totaling $13.6 million during the second quarter of 2018. During the third quarter of 2018, Horizon received regularly scheduled principal payments on investments totaling $5.6 million, compared to regularly scheduled principal payments totaling $5.4 million during the second quarter of 2018.

Commitments

During the quarter ended September 30, 2018, Horizon closed new loan commitments totaling $37.5 million to three companies, compared to the quarter ended June 30, 2018, wherein Horizon closed new loan commitments totaling $38.8 million to seven companies.

Pipeline

As of September 30, 2018, Horizon’s unfunded loan approvals and commitments (“Committed Backlog”), all priced at floating interest rates, were $47.0 million to eight companies. This compares to a Committed Backlog of $29.2 million to seven companies as of June 30, 2018. 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.

Warrant and Equity Portfolio

As of September 30, 2018, Horizon held a portfolio of warrant and equity positions in 78 portfolio companies, including 64 private companies, which provides the potential for future additional returns to Horizon’s shareholders.

About Horizon Technology Finance

Horizon Technology Finance Corporation 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 cleantech 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 has regional offices in Pleasanton, California, Reston, Virginia and Boston, Massachusetts. Horizon’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “HRZN”. 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 our 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:

Horizon Technology Finance

Investor Relations and Media Contact:

Daniel R. Trolio

The IGB Group

Chief Financial Officer

Leon Berman

(860) 674-9977

(212) 477-8438

dtrolio@horizontechfinance.com

lberman@igbir.com

Cision View original content:http://www.prnewswire.com/news-releases/horizon-technology-finance-provides-investment-portfolio-update-300728962.html

SOURCE Horizon Technology Finance Corporation

Check Also

communication via hand phone

Global Clinical Alarm Management Market to 2023 with Koninklijke Philips, Vocera, Ascom, Spok, Bernoulli, Connexall, Mobile Heartbeat, GE Healthcare, Capsule Technologie & Masimo Dominating

In 2018, North America is expected to account for the largest share of the global clinical alarm management market. The large share of this region can be attributed to the increasing cases of alarm fatigue and initiatives by government bodies to curtail the effects of alarm fatigue and the increasing need for integrated healthcare IT systems to ensure reliability, efficient maintenance of data, data integrity, and timely availability of patient data to authorized healthcare professionals.

Let your money work for you

SS&C GlobeOp Hedge Fund Performance Index and Capital Movement; IndexSS&C GlobeOp Hedge Fund Performance Index: February performance 1.24%; Capital Movement Index: March net flows advance 0.21%

The SS&C GlobeOp Hedge Fund Performance Index is an asset-weighted, independent monthly window on hedge fund performance. On the ninth business day of each month it provides a flash estimate of the gross aggregate performance of funds for which SS&C GlobeOp provides monthly administration services on the SS&C GlobeOp platform. Interim and final values, both gross and net, are provided in each of the two following months, respectively. Online data can be segmented by gross and net performance, and by time periods. The SS&C GlobeOp Hedge Fund Performance Index is transparent, consistent in data processing, and free from selection or survivorship bias. Its inception date is January 1, 2006.

Image of the US Economy

The Conference Board Leading Economic Index® (LEI) for the U.S. Increased; Economy to Continue Expanding in Near-Term

The ten components of The Conference Board Leading Economic Index® for the U.S. include:Average weekly hours, manufacturingAverage weekly initial claims for unemployment insuranceManufacturers' new orders, consumer goods and materialsISM® Index of New OrdersManufacturers' new orders, nondefense capital goods excluding aircraft ordersBuilding permits, new private housing unitsStock prices, 500 common stocksLeading Credit Index™Interest rate spread, 10-year Treasury bonds less federal fundsAverage consumer expectations for business conditionsFor full press release and technical notes:http://www.conference-board.org/data/bcicountry.cfm?cid=1

Growth stock image

Willamette Valley Vineyards Posts a Profit for 2018

Jim Bernau, Founder and President of the winery, said "We are pleased Income from Operations was up 15% for the year. Earnings are affected by the dividend cost as we raised the money needed for the planned winery near Dundee prior to construction. As we are able to deploy these development funds, we expect the projected earnings to more than offset the higher dividend costs."

Investing pennies

SEC Proposes Offering Reforms for Business Development Companies and Registered Closed-End Funds

The proposed amendments would modify the registration, communications, and offering processes available to BDCs and registered closed-end funds, building on offering practices that operating companies currently use.

Investment

Data Experts Outline Success Factors for Registered/Private Funds

The different types of data in the fund industry (e.g., external sources and internal sources created by the fund)Defining classification vs. segmentationSegmentation best practices"The asset management industry needs powerful information to navigate the challenges of volatile investment markets, unprecedented regulatory changes and transformational shifts in investors' product preferences," said Mr. Kosanovic. "Technology can help fund managers visualize their data in ways to help them optimally spend their time and resources with greater efficiency to grow their funds."

Alert image

Investor Alerts and Bulletins: The Escheatment Process

Keep your contact information updated. Financial institutions must attempt to notify you before escheating your account. Make sure financial institutions at which you have accounts have your accurate contact information (telephone, e-mail and physical address) to help ensure you receive any notices related to your accounts. If your financial institution sends you mail that is returned as undeliverable, or it cannot reach you through your other contact information, your account may be declared abandoned and end up in escheatment.

%d bloggers like this: