Daily News: July 16, 2012

Horizon Provides Investment Portfolio Update for Q2/12


Horizon Technology Finance Corporation provided a portfolio update for the second quarter of 2012.

Gerald A. Michaud, president of Horizon, commented, “With our enhanced liquidity from our senior notes offering, we increased investment activity for the fourth consecutive quarter. We were pleased to fund seven new companies and expand several existing relationships during the second quarter. Our record $60 million in new loan commitments during the second quarter reflected the strong demand for Horizon’s debt products and strengthened our leading industry brand.”

Michaud continued, “We began the quarter with a loan portfolio of $168 million and, with our new loans funded and no prepayments in the second quarter, we ended the quarter with a larger than expected portfolio balance of $197 million. While the growth we achieved may not be fully reflected in our second quarter results due to new loans funding late in the quarter combined with a lower beginning portfolio balance and no prepayment fees, we believe our significant market momentum, increased portfolio and high-quality backlog position Horizon well for strong future results.”

New Loans Funded

Gross and net new loan investments during the second quarter of 2012 totaled $37.3 million. There were no refinanced balances in the second quarter. During the second quarter of 2012, Horizon funded the following loans:

  • $6.7 million to Aquion Energy, Inc., a new portfolio company. Aquion is a developer and manufacturer of Aqueous Hybrid Ion batteries and energy storage systems.

  • $4 million to Avalanche Technology, Inc., a new portfolio company. Avalanche is a developer of next-generation storage products utilizing its proprietary Spin Programmable Memory technology.

  • $2.5 million to Celsion Corporation, a new portfolio company. Celsion is an oncology drug development company.

  • $2.5 million to Grab Networks Holdings, Inc., an existing portfolio company. Grab is a premium video distribution company.

  • $3.3 million to Luxtera, Inc., a new portfolio company. Luxtera is a developer of integrated silicon CMOS photonics.

  • $2 million to OraMetrix, Inc., an existing portfolio company. OraMetrix is a provider of 3-D technology solutions for orthodontic care.

  • $2.5 million to Sample6 Technologies, Inc., a new portfolio company. Sample6 is a developer of microbial monitoring technology for global
    food, healthcare and other industries.

  • $3.75 million to Semprius, Inc., a new portfolio company. Semprius is a developer of high concentration photovoltaic solar modules.

  • $0.5 million to Tigo Energy, Inc., an existing portfolio company. Tigo is a provider of solar optimization technology for photovoltaic solar installations.

  • $5 million to a new portfolio company which has developed a technology to process biomass into fuel for clean technology applications.

  • $3 million to an existing portfolio company which develops IT performance management software.

  • $1.5 million to an existing portfolio company which develops complex event processing software.

    Commitments

    During the quarter ended June 30, 2012, Horizon closed new loan commitments totaling $60 million to 11 companies, compared to the quarter ended March 31, 2012, new loan commitments totaled $24.5 million to three companies.

    As of June 30, 2012, Horizon’s unfunded loan approvals and commitments increased to $39.3 million to 13 companies, compared to a Committed Backlog of $16 million to six companies as of March 31, 2012. 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.

    Horizon Technology Finance Corporation is a business development company that provides secured loans to development-stage companies backed by established venture capital and private equity firms within the technology, life science, healthcare information and services, and clean-tech industries.