FARMINGTON, Conn., Oct. 7, 2020 /PRNewswire/ -- Horizon
Technology Finance Corporation (NASDAQ: HRZN) ("Horizon," "We,"
"Our" 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
provided its portfolio update for the third quarter ended
September 30, 2020.
"We successfully originated $16
million of loans, including to two new portfolio companies,
despite the protracted economic and health challenges," said
Gerald A. Michaud, President of
Horizon. "We remain committed to taking a selective investment
approach by investing in companies that offer advanced and unique
technological capabilities, have ample liquidity, and experienced
and strong management and investors. In addition, $43 million of prepayment activity during the
quarter again demonstrated the power of our predictive pricing
strategy. Our liquidity events further demonstrate the quality of
our portfolio companies and their potential for positive outcomes.
We remain focused on managing our existing portfolio through this
challenging economic period and utilizing our strong balance sheet
to thoughtfully expand and diversify our portfolio with new debt
investments, which will enable us to deliver value to our
shareholders."
Third Quarter 2020 Portfolio Update
Originations
Horizon funded four loans during the third quarter of 2020
totaling $16.0 million,
including:
- $10.0 million to a new portfolio
company, Topia Mobility Inc., a developer of a global talent
mobility software platform.
- $5.0 million to a new portfolio
company, BriteCore Holdings, Inc., a developer of a cloud-native,
software platform for the property and casualty insurance
segment.
- $1.0 million to two existing
Horizon portfolio companies.
Liquidity Events
Horizon experienced liquidity events from five portfolio
companies in the third quarter of 2020, including principal
prepayments of $43.1 million and
warrant proceeds of $1.8 million,
compared to $30.0 million of
principal prepayments and $0.5
million of warrant proceeds during the second quarter of
2020:
- In August, New Signature, Inc. ("New Signature"), in connection
with its sale to Cognizant, prepaid its outstanding principal
balance of $14.5 million on its
venture loan, plus interest, end-of-term payment and prepayment
fee. Horizon also received proceeds of approximately $0.7 million in connection with the termination
of its warrants in New Signature.
- In August, Celsion Corporation ("Celsion") (NASDAQ: CLSN)
prepaid $4.6 million of the
outstanding principal balance of its venture loan, plus interest
and end-of-term payment on such prepayment. Horizon continues to
hold warrants in Celsion, in addition to its remaining debt
investment of $5.0 million.
- In August, Horizon received proceeds of $1.1 million upon the exercise and sale of its
warrants in Ontrak, Inc. ("Ontrak"). Horizon continues to hold
warrants in Ontrak.
- In September, Skillshare, Inc. ("Skillshare") prepaid its
outstanding principal balance of $9.0
million on its venture loan, plus interest, end-of-term
payment and prepayment fee. Horizon continues to hold warrants in
Skillshare.
- In September, Mustang Bio, Inc. ("Mustang Bio") (NASDAQ: MBIO)
prepaid its outstanding principal balance of $15.0 million on its venture loan, plus interest,
end-of-term payment and prepayment fee. Horizon continues to hold
warrants in Mustang Bio.
Principal Payments Received
During the third quarter of 2020, Horizon received regularly
scheduled principal payments on investments totaling $5.9 million, compared to regularly scheduled
principal payments totaling $4.9
million during the second quarter of 2020.
Commitments
During the third quarter ended September
30, 2020, Horizon closed new loan commitments totaling
$21.0 million to four companies,
compared to new loan commitments of $75.0
million to four companies in the second quarter of 2020.
Pipeline
As of September 30, 2020,
Horizon's unfunded loan approvals and commitments ("Committed
Backlog"), all priced at floating interest rates, were $95.9 million to 13 companies. This compares to a
Committed Backlog of $100.9 million
to 12 companies as of June 30, 2020.
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.
Capital Markets Activity – Warrant and Equity
Portfolio
As of September 30, 2020, Horizon
held a portfolio of warrant and equity positions in 68 portfolio
companies, including 57 private companies, which provides the
potential for future additional returns to Horizon's
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 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 also has regional offices in
Pleasanton, California 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 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.
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:http://www.prnewswire.com/news-releases/horizon-technology-finance-provides-third-quarter-2020-portfolio-update-301148005.html
SOURCE Horizon Technology Finance Corporation