Horizon Provides Investment Portfolio Update for Q3/12
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 third quarter of 2012.
Gerald A. Michaud, president of Horizon, commented, “During the third quarter, we took advantage of the enhanced liquidity provided by our $30 million equity offering in July to increase investment activity for our fifth consecutive quarter. By funding a total of $48.5 million in new loans to eight existing portfolio companies and to four new companies, we have maintained our positive momentum in the marketplace and expanded our earning assets. The ongoing success we have achieved in sourcing attractive investment opportunities that meet our investment criteria has enabled Horizon to end the third quarter with a strong backlog of $32.8 million in unfunded commitments, which puts Horizon in a position for growth going forward. We expect our new equity, combined with our increased leverage from our new $75 million term loan facility, will allow us to maintain our focus on deploying capital in a disciplined manner and further expand our diverse high-quality portfolio.”
New Loans Funded
Gross new loan investments during the third quarter of 2012 totaled $48.5 million. Less refinanced balances, net new loan investments totaled approximately $36.5 million. During the third quarter of 2012, Horizon provided funding to the following new and existing portfolio companies:
During the quarter ended September 30, 2012, Horizon closed new loan commitments totaling $41.3 million to six companies, compared to the quarter ended June 30, 2012, wherein Horizon closed new loan commitments totaling $60.0 million to 11 companies.
As of September 30, 2012, Horizon’s unfunded loan approvals and commitments (“Committed Backlog”) was $32.8 million to 10 companies, compared to a Committed Backlog of $39.3 million to 13 companies as of June 30, 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.