Horizon Technological know-how Finance Provides Fourth Quarter 2020 Portfolio Update
4 min readFARMINGTON, Conn., Jan. 13, 2021 /PRNewswire/ — Horizon Technologies Finance Corporation (NASDAQ: HRZN) (“Horizon,” “We,” “Our” or the “Firm”), a main specialty finance business that supplies cash in the form of secured financial loans to venture funds backed corporations in the engineering, daily life science, healthcare facts and expert services, and sustainability industries, nowadays presented its portfolio update for the fourth quarter ended December 31, 2020.
“We are delighted to have accomplished a incredibly solid quarter of portfolio development, originating $77 million of loans to both new and present portfolio companies,” explained Gerald A. Michaud, President of Horizon. “In spite of a complicated environment, Horizon’s brand and platform have been ready to bring in and discover high quality investment decision possibilities in corporations with unique and ground breaking technologies, adept management and excellent growth opportunity. Moreover, the $17 million in loan prepayments we obtained through the quarter reflects the means of our high-quality portfolio firms to entire exit transactions, which supply accelerated profits to Horizon. We retain a robust backlog and increasing pipeline of new investment opportunities, positioning Horizon for continued advancement as we start off the new calendar year.”
Fourth Quarter 2020 Portfolio Update
Originations
Horizon funded 9 loans during the fourth quarter of 2020 totaling $76.6 million, together with:
- $18. million to a new portfolio company, Getaround, Inc., a peer-to-peer motor vehicle sharing system.
- $13. million to a new portfolio business, Alula, Inc., a designer and company of safety techniques bought solely to qualified distributors and dealers.
- $10. million to a new portfolio enterprise, a developer of a software package-defined composable infrastructure platform.
- $10. million to a new portfolio company, a developer of technological know-how that can determine any microbe in order to accelerate procedure and enhance general public overall health.
- $10. million to an existing portfolio corporation, Magnolia Medical Systems, Inc., a developer of an Fda-cleared substantial-precision blood society selection medical unit.
- $7.5 million to a new portfolio firm, Sonex Health, Inc., a developer of know-how, training and training systems for ultrasound guided processes.
- $5. million to a new portfolio business, Corinth Medtech, Inc., a developer of an Food and drug administration-cleared device for treating symptoms connected to Benign Prostatic Hyperplasia (BPH).
- $2.5 million to a new portfolio company, Canary Medical, Inc., a health care details corporation bettering healthcare results with its proprietary sensible professional medical units.
- $.6 million to an present Horizon portfolio enterprise.
Liquidity Activities
Horizon professional liquidity events from a few portfolio corporations in the fourth quarter of 2020, like principal prepayments of $17.3 million, as very well as a results payment, warrant proceeds and fairness totaling $1.4 million, in contrast to $43.1 million of principal prepayments and $1.8 million of warrant proceeds in the course of the third quarter of 2020:
- In November, Horizon been given proceeds and fairness totaling $1.3 million on the exercise and sale of warrants, as well as the recognition of a accomplishment charge totaling $.1 million, in ShopKeep, Inc. (“ShopKeep”). Horizon carries on to hold warrants in ShopKeep.
- In December, Mohawk Group Holdings (“Mohawk”) (NASDAQ: MWK) pay as you go its outstanding principal balance of $13. million on its undertaking bank loan, moreover fascination, end-of-expression payment and prepayment fee. Horizon proceeds to keep warrants in Mohawk.
- In December, Vero Biotech, LLC (“Vero”) prepaid its superb principal balance of $4.3 million on its undertaking mortgage, moreover desire, close-of-time period payment and prepayment rate. Horizon continues to keep warrants in Vero.
Principal Payments Received
During the fourth quarter of 2020, Horizon received on a regular basis scheduled principal payments on investments totaling $4.5 million, when compared to consistently scheduled principal payments totaling $5.9 million through the third quarter of 2020.
Commitments
Through the fourth quarter finished December 31, 2020, Horizon closed new loan commitments totaling $103.1 million to 8 corporations, in contrast to new bank loan commitments of $21. million to 4 organizations in the third quarter of 2020.
Pipeline
As of December 31, 2020, Horizon’s unfunded financial loan approvals and commitments (“Committed Backlog”), all priced at floating fascination prices, ended up $106.5 million to 16 companies. This compares to a Dedicated Backlog of $95.9 million to 13 businesses as of September 30, 2020. Whilst Horizon’s portfolio firms have discretion whether or not to draw down this kind of commitments, the proper of a portfolio corporation to draw down its commitment is generally matter to achievement of particular milestones and other problems to borrowing.
Capital Markets Action – Warrant and Fairness Portfolio
As of December 31, 2020, Horizon held a portfolio of warrant and equity positions in 69 portfolio providers, which includes 58 non-public organizations, which gives the prospective for future added returns to Horizon’s shareholders.
About Horizon Technological know-how Finance
Horizon Engineering Finance Company (NASDAQ: HRZN) is a major specialty finance firm that presents capital in the sort of secured financial loans to undertaking capital backed firms in the technological know-how, lifetime science, healthcare details and companies, and sustainability industries. The investment decision aim of Horizon is to improve its expense portfolio’s return by producing recent cash flow from the debt investments it makes and money appreciation from the warrants it gets when earning these types of personal debt investments. Headquartered in Farmington, Connecticut, Horizon also has regional offices in Pleasanton, California and Reston, Virginia. To find out a lot more, be sure to take a look at www.horizontechfinance.com.
Ahead-On the lookout Statements
Statements involved herein may possibly represent “ahead-looking statements” in the which means of the Personal Securities Litigation Reform Act of 1995. Statements other than statements of historical points incorporated in this push launch may well represent ahead-looking statements and are not ensures of potential overall performance, situation or results and involve a amount of hazards and uncertainties. True final results could vary materially from these in the ahead-on the lookout statements as a outcome of a amount of variables, such as those people described from time to time in Horizon’s filings with the Securities and Trade Fee. Horizon undertakes no obligation to update any forward-searching statement made herein. All ahead-on the lookout statements discuss only as of the date of this push release.
Contacts:
Investor Relations:
ICR
Garrett Edson
[email protected]
(860) 284-6450
Media Relations:
ICR
Chris Gillick
[email protected]
(646) 677-1819
Supply Horizon Technological innovation Finance Corporation
