Horizon Technology Finance Provides Fourth Quarter 2022 Portfolio Update

– Horizon Platform Originates $114 Million of New Loans in This autumn, Together with $104 Million of New Loans for HRZN –
– HRZN Grows Mortgage Portfolio by $262 Million in 2022 –
– Horizon Platform Ends 2022 with Dedicated Backlog of $255 Million, Together with $220 Million in HRZN Commitments –   

FARMINGTON, Conn., Jan. 11, 2023 /PRNewswire/ — Horizon Expertise Finance Company (NASDAQ: HRZN) (“HRZN” or the “Firm”), a number one specialty finance firm that gives capital within the type of secured loans to enterprise capital backed firms within the expertise, life science, healthcare info and companies, and sustainability industries, right this moment supplied its portfolio replace for the fourth quarter ended December 31, 2022 and an replace on the lending platform (“Horizon Platform”) of Horizon Expertise Finance Administration LLC (“HTFM”), its funding adviser.

“The Horizon Platform ended the 12 months with one other quarter of sturdy originations and portfolio progress, funding $114 million of loans, together with $104 million of loans for HRZN,” stated Gerald A. Michaud, President of HRZN and HTFM. “The facility of the Horizon model was evident all through 2022, because the Horizon Platform originated over $543 million in new loans, together with a record-high $403 million for the HRZN portfolio.”

“Moreover, the Horizon Platform’s dedicated backlog of debt investments remained sturdy at $255 million, together with $220 million in HRZN commitments, and the Horizon Platform pipeline stays strong, offering ample runway to thoughtfully develop HRZN’s portfolio of debt investments,” added Mr. Michaud. “As we enter 2023, we imagine the Horizon Platform and HRZN stay effectively positioned to ship further worth to HRZN’s shareholders.”

Fourth Quarter 2022 Portfolio Replace

Originations

In the course of the fourth quarter of 2022, a complete of $113.5 million of loans funded by way of the Horizon Platform, together with ten loans totaling $103.9 million funded by HRZN as follows:

• $45.0 million to a brand new portfolio firm, Evelo Biosciences, Inc. (NASDAQ: EVLO), a scientific stage biotechnology firm growing a novel platform of orally delivered medicines appearing on the small intestinal axis.
• $10.6 million to a brand new portfolio firm, a web based inside design service, a portion of which was used to buy belongings of an current portfolio firm of HRZN which resulted in a partial paydown of HRZN’s debt funding in such current portfolio firm.
• $10.0 million to a brand new portfolio firm, Groundspeed Analytics, Inc., a developer of an AI platform that captures, buildings, and delivers full danger knowledge to business P&C insurance coverage carriers.
• $10.0 million to an current portfolio firm, Magnolia Medical Applied sciences, Inc., a developer of an FDA-cleared high-precision blood tradition assortment medical gadget.
• $7.5 million to an current portfolio firm, Divergent Applied sciences, Inc., a creator of an modern international manufacturing infrastructure platform for the automotive business.
• $7.5 million to an current portfolio firm, Soli Natural Inc., a number one grower and marketer of recent natural culinary herbs, offering sustainable, USDA-certified natural, regionally grown produce to retailers.
• $7.0 million to a brand new portfolio firm, Robin Healthcare, Inc., a developer of an AI gadget that silently observes healthcare visits, extracts knowledge, then builds and uploads scientific notes to a affected person’s digital well being report.
• $2.5 million to an current portfolio firm, Sonex Well being, Inc., a developer of expertise, schooling and coaching packages for ultrasound guided procedures.
• $2.5 million to an current portfolio firm, a developer of subsequent technology microbial options for each companion and livestock animals.
• $1.3 million to an current portfolio firm, a knowledge platform that allows entrepreneurs to construct customized digital experiences and 1-to-1 advertising campaigns by specializing in behavioral knowledge.

Liquidity Occasions and Partial Paydowns

HRZN skilled liquidity or partial paydown occasions from two portfolio firms within the fourth quarter of 2022, together with principal prepayments of $8.2 million, in comparison with $22.0 million of principal prepayments through the third quarter of 2022: 

• In November, LogicBio Therapeutics, Inc. pay as you go its excellent principal steadiness of $2.6 million on its enterprise mortgage, plus curiosity, end-of-term cost and prepayment price. HRZN continues to carry warrants within the firm.
• In December, HRZN acquired a paydown of $5.6 million on its enterprise mortgage to Inside Outline, Inc. from the sale of sure belongings of Inside Outline, Inc. to a brand new borrower of HRZN, whose buy of such belongings was financed by HRZN with a brand new debt funding.

Principal Funds Obtained

In the course of the fourth quarter of 2022, HRZN acquired frequently scheduled principal funds on investments totaling $4.1 million, in comparison with frequently scheduled principal funds totaling $4.5 million through the third quarter of 2022.

Commitments

In the course of the quarter ended December 31, 2022, HRZN closed new mortgage commitments totaling $102.6 million to 5 firms, in comparison with new mortgage commitments of $156.0 million to eight firms within the third quarter of 2022. Throughout the Horizon Platform, a further $3.4 million of unfunded mortgage commitments have been closed.

Pipeline and Time period Sheets

As of December 31, 2022, HRZN’s unfunded mortgage approvals and commitments (“Dedicated Backlog”) have been $220.0 million to 18 firms. This compares to a Dedicated Backlog of $252.0 million to 26 firms at HRZN as of September 30, 2022. HRZN’s portfolio firms have discretion whether or not to attract down such commitments and the precise of a portfolio firm to attract down its dedication is commonly topic to achievement of particular milestones and different circumstances to borrowing.  Accordingly, there isn’t any assurance that all or any of those transactions will probably be funded by HRZN. Throughout the Horizon Platform, the quarter ended with a further $35.0 million of unfunded mortgage approvals and commitments.

In the course of the quarter, HTFM acquired signed time period sheets which might be within the approval course of, which can consequence within the Horizon Platform offering as much as an combination of $30.0 million of recent debt investments.  These alternatives are topic to underwriting circumstances together with, however not restricted to, the completion of due diligence, negotiation of definitive documentation and funding committee approval, in addition to compliance with HTFM’s allocation coverage. Accordingly, there isn’t any assurance that all or any of those transactions will probably be accomplished or funded by HRZN.

Warrant and Fairness Portfolio

As of December 31, 2022, HRZN held a portfolio of warrant and fairness positions in 99 portfolio firms, together with 82 personal firms, which supplies the potential for future further returns to HRZN’s shareholders.

About Horizon Expertise Finance

Horizon Expertise Finance Company (NASDAQ: HRZN) is a number one specialty finance firm that gives capital within the type of secured loans to enterprise capital backed firms within the expertise, life science, healthcare info and companies, and sustainability industries. The funding goal of Horizon is to maximise its funding portfolio’s return by producing present revenue from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional workplace in Pleasanton, California, and funding professionals situated in Austin, Texas, Chicago, Illinois, Reston, Virginia and Portland, Maine. To be taught extra, please go to horizontechfinance.com. 

Ahead-Trying Statements

Statements included herein could represent “forward-looking statements” inside the which means of the Non-public Securities Litigation Reform Act of 1995. Statements apart from statements of historic information included on this press launch could represent forward-looking statements and usually are not ensures of future efficiency, situation or outcomes and contain numerous dangers and uncertainties. Precise outcomes could differ materially from these within the forward-looking statements on account of numerous components, together with these described now and again in Horizon’s filings with the Securities and Alternate Fee. Horizon undertakes no responsibility to replace any forward-looking assertion made herein. All forward-looking statements converse solely as of the date of this press launch.

Contacts:

Investor Relations:
ICR
Garrett Edson
[email protected]
(860) 284-6450

Media Relations:
ICR
Chris Gillick
[email protected] 
(646) 677-1819

SOURCE Horizon Expertise Finance Company