2022-04-13 | NDAQ:HRZN | Press release
– The Horizon platform is born $132 million new credits in Q1, including $73 million new loans for HRZN –
– Horizon Platform ends the quarter with a record backlog of $172 millionIncluding $151 million in HRZN commitments –
FARMINGTON, Conn., April 13, 2022 /PRNewswire/ — Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN” or the “Company”), a leading specialty finance company that provides capital in the form of secured loans to private equity-backed companies. risk in the technology, life sciences, information and health services and sustainability industries, today presented its portfolio update for the first quarter ended March 31, 2022 and an update on the lending platform (“Horizon Platform”) of Horizon Technology Finance Management LLC (“HTFM”), its investment advisor.
“We had a very productive start to 2022, closing $132 million loans were issued through our lending platform in the first quarter, including $73 million of loans for HRZN,” said Gerald A. Michaud, President of HTFM. “In addition, the Horizon platform’s committed order book hit a record high. $172 million investments in the form of debt, including $151 million in HRZN engagements, showcasing the strength of the Horizon brand to attract quality innovative and diverse businesses. HRZN also received $12 million in loan prepayments during the quarter, providing incremental and accelerated revenue and continuing to validate our predictive pricing strategy. With a solid order book and a $165 million new awards to accompany a significant pipeline of new investment opportunities, we believe the Horizon platform and HRZN remain well positioned to continue to grow and deliver additional value to HRZN shareholders. »
Q1 2022 Portfolio Update
During the first quarter of 2022, a total of $131.9 million loans financed via the Horizon platform, including 16 loans totaling $73.2 million funded by HRZN as follows:
- $7.5 million to a new holding company, MyForest Foods Co., a producer of sustainable meat replacement products using mycelium or mushroom roots.
- $7.5 million to a new holding company, a software services provider focused on planning, migrating, operating and automating SAP in the cloud.
- $7.5 million to a new holding company, a leader in indoor vertical farming.
- $7.5 million to a new holding company, a developer of digital prescription diagnostic and therapeutic products focused on pediatric behavioral health issues.
- $7.5 million to a new holding company, a leading grower and marketer of fresh organic culinary herbs, supplying retailers with sustainable, USDA-certified, locally grown organic produce.
- $5.5 million to an existing holding company, NextCar Holding Company, Inc. dba Autonomy, an online platform providing consumers with high-quality new and used cars on a subscription basis.
- $5.0 million to a new holding company, Aerobiotix, LLC, a manufacturer of air disinfection systems for medical, healthcare and community facilities that eliminate airborne pathogens to optimize indoor air quality .
- $5.0 million to a new holding company, Secure Transfusion Services, Inc., an operator of commercial blood collection centers that source and distribute vital and in-demand blood components, such as platelets, to hospitals.
- $5.0 million to an existing holding company, Castle Creek Biosciences, Inc., a developer of gene therapies for patients with rare and serious genetic diseases.
- $5.0 million to an existing portfolio company, a medical data company improving healthcare outcomes through its proprietary smart medical devices.
- $2.5 million to an existing holding company, Spineology, Inc., a developer of anatomy-preserving technology solutions for use in lumbar spinal fusion procedures.
- $2.5 million to an existing holding company, Dropoff, Inc., a same-day delivery service for healthcare and other companies.
- $2.5 million to an existing holding company, a builder of conservation memorial forests that provide sustainable alternatives to cemeteries.
- $1.25 million to an existing holding company, Unagi, Inc., a developer of high-end portable electric scooters that are offered for sale and under an affordable monthly subscription program.
- $1.0 million to an existing holding company, Alula, Inc., a designer and manufacturer of security systems sold exclusively to professional distributors and resellers.
- $0.4 million to an existing company, MacuLogix, Inc., a medical device company in the optometry and ophthalmology industry.
HRZN experienced liquidity events from two holding companies in the first quarter of 2022, including prepayments of principal from $12.0 millioncompared to $55.0 million prepayments of principal and $0.4 million proceeds from warrants and shares during the fourth quarter of 2021:
- In February, LiquiGlide, Inc. prepaid its outstanding principal balance of $2.0 million on his subprime loan, plus interest, end-of-term payment and prepayment charges. HRZN continues to hold mandates in the company.
- In February, Quip NYC Inc. prepaid its outstanding principal balance of $10.0 million on his subprime loan, plus interest, end-of-term payment and prepayment charges. HRZN continues to hold mandates in the company.
Principal payments received
During the first quarter of 2022, HRZN received regular principal payments on investments totaling $1.9 millioncompared to regular capital repayments totaling $2.9 million during the fourth quarter of 2021.
During the quarter ended March 31, 2022HRZN closed new loan commitments totaling $100.4 million to 11 companies, against new credit commitments of $114.9 million to 10 companies in the fourth quarter of 2021. The other funds managed by HTFM, during the quarter, closed new loan commitments totaling $60.0 million unfunded loan approvals and commitments.
Pipeline and Term Sheets
From March 31, 2022HRZN’s unfunded loan approvals and commitments (“Committed Backlog”) have been $150.8 million to 20 companies. This compares to a committed order book of $124.5 million to 23 companies in December 31, 2021. HRZN’s portfolio companies have the discretion to withdraw such covenants and a portfolio company’s right to withdraw its covenant is often subject to the achievement of specific milestones and other borrowing conditions. Accordingly, there can be no assurance that any or all of these transactions will be financed by HRZN. The other funds managed by HTFM ended the quarter with a total of $20.8 million unfunded loan approvals and commitments.
During the quarter, HTFM received signed term sheets which are in the process of being approved, which may result in the Horizon platform delivering up to a total of $165.0 million new debt investments. These opportunities are subject to underwriting conditions including, but not limited to, completion of due diligence, negotiation of final documentation and investment committee approval, as well as compliance with the investment policy. allocation of HTFM. Accordingly, there can be no assurance that any or all of these transactions will be completed or financed by HRZN.
Portfolio of warrants and shares
From March 31, 2022HRZN held a portfolio of warrants and equity interests in 85 portfolio companies, including 71 private companies, which provides the potential for future incremental returns to HRZN shareholders.
About Horizon Technology Financing
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture-backed companies in the technology, life sciences, health information and services and sustainability. HRZN’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 of these debt investments. Horizon Technology Finance Management LLC is headquartered in Farmington, Connecticutwith a regional office in Pleasanton, Californiaand investment professionals located in Portland, Maine, Austin, TX, and Reston, Virginia. To learn more, 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 facts included in this press release may constitute forward-looking statements and do not constitute are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements due to a number of factors, including those described from time to time in Horizon’s filings 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