Fortress Closes Horizon Credit $75 Million Term Loan
Specialty finance company Horizon Technology Finance announced that its wholly owned subsidiary, Horizon Credit III, has closed a new term loan credit facility of $75 million with Fortress Credit, an affiliate of Fortress Investment Group. The company said it received an initial advance of $10 million at closing.
Horizon intends to use the credit facility to leverage its existing investments, as well as deploy additional capital for new investments.
The credit facility has a three-year term subject to two one-year extensions with a draw period of up to four years. Amounts borrowed will bear interest at LIBOR plus 6.0%, with a LIBOR floor of 1%. The effective loan advance rate is 66% of eligible loans. The new credit facility with Fortress Credit complements the company’s existing credit facilities with Wells Fargo Capital Finance and WestLB, both of which continue to provide leverage to the company.
Robert D. Pomeroy, Jr., chairman and chief executive officer, commented, “We are pleased to close a new $75 million term loan facility with Fortress Credit as we continue to take advantage of the strong demand for our venture debt products. By strategically increasing our leverage, we have further enhanced our ability to grow our high-quality and diversified investment portfolio. With our significant access to capital and strong market momentum, we intend to strengthen Horizon’s leadership position in the venture lending industry and drive future earnings growth.”