Horizon Technology Finance announced it has renewed and amended its revolving credit facility previously administered by Wells Fargo Capital Finance and facilitated the assignment of all rights and obligations of Wells Fargo under the credit facility to Key Equipment Finance.

The credit facility, as amended, provides the company’s wholly owned subsidiary, Horizon Credit II with a $50 million commitment from Key and contains an “accordion” feature allowing additional lenders to make commitments under the credit facility up to an aggregate commitment of $150 million. The amended facility with Key complements the company’s existing term loan credit facility.

The credit facility will have a LIBOR floor of 0.75%, compared to a previous LIBOR floor of 1.00%. The stated interest rate under the credit facility is one-month LIBOR plus 3.25%, for a current interest rate applied on outstanding balances of 4.00%, as compared to a previous interest rate of 4.25%. The amended credit facility has a three-year draw period followed by a two-year term out option. The company may borrow under the facility at an advance rate of 50% against eligible loans.

“We are excited to partner with one of the leading venture lenders in the market. With Key Equipment Finance’s strong financial backing combined with the substantial market expertise of the Horizon team, this facility considerably enhances Horizon’s future prospects,” said Rian W. Emmett, managing director of Key Equipment Finance.

Horizon Technology Finance 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.