FARMINGTON, Conn., Oct. 11, 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
third quarter of 2017.
"We experienced solid investment activity during the third
quarter including originating five new loans and adding
$50 million of loan commitments and
approvals," said Gerald A. Michaud,
President of Horizon. "Our origination platform, combined with an
active lending environment, contributed to us ending the quarter
with a committed and approved backlog of $54
million. With ample liquidity for new investments, we
believe Horizon is well positioned to deliver long-term,
sustainable portfolio growth while continuing to profit from
positive liquidity events."
New Loans Funded
Horizon funded five new loans in the third quarter of 2017
totaling $18.3 million to the
following portfolio companies:
- $7.0 million to a new portfolio
company, Titan Pharmaceuticals, Inc., a specialty pharmaceutical
company developing proprietary therapeutics for the treatment of
select chronic diseases.
- $6.0 million to a new portfolio
company, a developer of online strategy and combat games.
- $3.0 million to a new portfolio
company, WebLinc Corporation, a cloud-based provider of e-commerce
solutions for fast growing online retailers.
- $1.5 million to an existing
portfolio company, Luxtera, Inc., a developer of integrated silicon
CMOS photonics.
- $0.8 million to an existing
portfolio company, Decisyon, Inc., a provider of collaborative
enterprise software solutions to Global 1000 companies.
Liquidity Events
During the quarter ended September 30,
2017, Horizon experienced liquidity events from three
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, Strongbridge Biopharma plc ("Strongbridge") prepaid the
outstanding principal balance of $7.5
million on its venture loan, plus interest, end-of-term
payment and prepayment fee. Horizon continues to hold warrants in
Strongbridge.
In July, Skyword Inc. ("Skyword") prepaid the outstanding
principal balance of $3.5 million on
its venture loan, plus interest, end-of-term payment and prepayment
fee. Horizon continues to hold warrants in Skyword.
In September, Sys-Tech Solutions, Inc. ("Sys-Tech") 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
Sys-Tech.
Refinanced Principal Balances, Early Principal Payoffs, and
Principal Payments Received
As noted above, Horizon experienced early pay-offs during the
third quarter of 2017 totaling $12.5
million, compared to early pay-offs totaling $12.3 million during the second quarter of 2017.
During the third quarter of 2017, Horizon received regularly
scheduled principal payments on investments totaling $7.2 million, compared to regularly
scheduled principal payments totaling $8.5
million during the second quarter of 2017.
Commitments
During the quarter ended September 30,
2017, Horizon closed new loan commitments totaling
$24.8 million to four companies,
compared to the quarter ended June 30,
2017, wherein Horizon closed new loan commitments totaling
$43.8 million to five companies.
Pipeline
As of September 30, 2017,
Horizon's unfunded loan approvals and commitments ("Committed
Backlog"), all priced at floating interest rates, were $54.0 million to eight companies. This compares
to a Committed Backlog of $45.0
million to six companies as of June
30, 2017. 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, 2017, 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 Contacts:
|
Daniel R.
Trolio
|
The IGB
Group
|
Chief Financial
Officer
|
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