Daily News: April 5, 2012

Horizon Provides Investment Portfolio Update for Q1/12


Horizon Technology Finance Corporation, a specialty finance company that provides secured loans to venture capital and private equity backed development-stage companies in the technology, life science, healthcare information and services and clean-tech industries, provided a portfolio update for the first quarter of 2012.

Gerald A. Michaud, president of Horizon, commented, “During the first quarter of 2012, we continued to efficiently deploy our capital into high-quality earning assets. Our ongoing ability to meet the strong demand for Horizon’s debt products is evidenced by our increasing level of investment activity for the last three quarters, from $7 million in the third quarter of 2011, to $19.5 million in the fourth quarter of 2011 and $31.7 million in the first quarter of this year. We are also pleased that in the first quarter we were able to expand or maintain our investments in several of our existing portfolio companies, which demonstrated strong operating performance in 2011. Maintaining and expanding our investments in successful portfolio companies bodes well for the overall quality of our portfolio going forward. In addition, with Horizon’s recent closing of a $30 million senior note financing, we are well positioned to meet the demand for our debt products and maintain our investment growth trajectory during the balance of 2012, which will drive future performance.”

Gross new loan investments during the first quarter of 2012 totaled $31.7 million. Less refinanced balances, net new loan investments totaled approximately $12 million. During the first quarter of 2012, Horizon provided funding to the following new portfolio company and four existing portfolio companies:

  • Optaros, Inc., received a $2 million loan investment from Horizon. Optaros delivers digital commerce services that embrace emerging technologies to create exceptional branded experiences.

  • Radisphere National Radiology Group, Inc., an existing portfolio company, received a $12 million loan investment from Horizon. Radisphere works with rural and community hospitals to measurably improve quality and patient care, while managing costs.

  • Tigo Energy, Inc., an existing portfolio company, received a $3 million loan investment from Horizon. Tigo focuses on applying innovative technologies to the solar photovoltaic space, delivering more energy, active management and enhanced safety for utility, commercial and residential solar arrays.

  • An existing portfolio company received a $7 million loan investment from Horizon. This company provides identity and access management solutions.

  • An existing portfolio company received a $7.7 million loan investment from Horizon. This company is a late-stage biopharmaceutical company focused on discovering, developing and commercializing therapeutics for the treatment of upper gastrointestinal motility disorders.

    During the quarter ended March 31, 2012, Horizon closed loan commitments totaling $24.5 million, plus warrants, to one new company and two existing portfolio companies. For the quarter ended December 31, 2011, loan commitments totaled $21.5 million.

    As of March 31, 2012, Horizon’s unfunded loan approvals and commitments totaled $16 million to six companies, which compares to a committed backlog of $22.5 million as of December 31, 2011. While Horizon’s portfolio companies have discretion whether to draw down such commitments, in some cases, the right of a company to draw down its commitment is subject to the portfolio company achieving specific milestones (e.g. an additional capital issuance or the completion of a clinical trial).