FARMINGTON, Conn., April 12, 2017 /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
first quarter of 2017.
"We experienced increased investment activity during the first
quarter as we focused our marketing efforts on life science and
innovative technology companies with limited leverage," said
Gerald A. Michaud, President of
Horizon. "While deploying capital into new investments, Horizon
also profited from positive liquidity events from six portfolio
companies, including loan prepayments and realized gains from the
exercise and sale of warrants. With our considerable liquidity, we
believe we are positioned to grow our investment portfolio over the
balance of the year."
New Loans Funded
Horizon funded five new loans in the first quarter of 2017
totaling $25.8 million to the
following portfolio companies:
- $12.0 million to a new portfolio
company, IgnitionOne, Inc., a leading digital marketing and
services provider and one of the largest independent marketing
technology companies in the world.
- $4.0 million to a new portfolio
company, a mobile app publisher that delivers innovative
promotions, rewards and instant-win experiences through free mobile
gaming on both iOS and Android.
- $4.0 million to an existing
portfolio company, a provider of a cloud-based, iPad point-of-sale
system for small businesses.
- $3.8 million to an existing
portfolio company, vTv Therapeutics, Inc., a clinical-stage
biopharmaceutical company committed to the discovery and
development of treatments for a range of human diseases including
Alzheimer's disease and diabetes.
- $2.0 million to an existing
portfolio company, Luxtera, Inc., a developer of integrated silicon
CMOS photonics.
Liquidity Events
During the quarter ended March 31,
2017, Horizon experienced liquidity events from six
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.
As previously disclosed, in March, Argos Therapeutics, Inc.
("Argos") prepaid the outstanding principal balance of $9.2 million on its venture loan, plus interest.
Horizon continues to hold warrants in Argos.
In March, Rypos, Inc. ("Rypos") prepaid the outstanding
principal balance of $1.5 million on
its venture loan, plus interest, end-of-term payment and prepayment
fee. Horizon continues to hold warrants in Rypos.
In March, Social Intelligence Corporation ("Social
Intelligence") prepaid the outstanding principal balance of
$0.2 million on its venture loan,
plus interest, end-of-term payment and prepayment fee. Horizon
continues to hold warrants in Social Intelligence.
In March, Vidsys, Inc. prepaid the outstanding principal balance
of $2.6 million on its venture loan,
plus interest, end-of-term payment and prepayment fee.
In March, MedAvante, Inc. ("MedAvante") prepaid the outstanding
principal balance of $10.0 million on
its venture loan, plus interest, end-of-term payment and prepayment
fee. Horizon also received proceeds of approximately $1.0 million pursuant to its exercise and sale of
warrants in MedAvante.
In March, Luxtera, Inc. ("Luxtera") prepaid the outstanding
principal balance of $3.7 million on
its venture loan, plus interest and end-of-term payment.
Horizon continues to hold warrants in Luxtera.
Refinanced Principal Balances, Early Principal Payoffs, and
Principal Payments Received
As noted above, Horizon experienced early pay-offs during the
first quarter of 2017 totaling $27.2
million, compared to early pay-offs totaling $12.7 million during the fourth quarter of 2016.
During the first quarter of 2017, Horizon received regularly
scheduled principal payments on investments totaling $12.3 million, compared to regularly
scheduled principal payments totaling $12.9
million during the fourth quarter of 2016.
Commitments
During the quarter ended March 31,
2017, Horizon closed new loan commitments totaling
$19.5 million to three companies,
compared to the quarter ended December 31,
2016, wherein Horizon closed new loan commitments totaling
$27.5 million to two companies.
Pipeline
As of March 31, 2017, Horizon's
unfunded loan approvals and commitments ("Committed Backlog"), all
priced at floating interest rates, were $11.5 million to three companies. This compares
to a Committed Backlog of $20.8
million to four companies as of December 31, 2016. 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 March 31, 2017, Horizon held
a portfolio of warrant and equity positions in 76 portfolio
companies, including 63 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 Contacts:
|
Daniel R.
Trolio
|
The IGB
Group
|
Chief Financial
Officer
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Scott Eckstein / Leon
Berman
|
(860)
674-9977
|
(212) 477-8261 /
(212) 477-8438
|
dtrolio@horizontechfinance.com
|
seckstein@igbir.com /
lberman@igbir.com
|
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SOURCE Horizon Technology Finance Corporation