Horizon Technologies Finance Presents Fourth Quarter 2020 Portfolio Update
4 min readFARMINGTON, Conn., Jan. 13, 2021 /PRNewswire/ — Horizon Technological know-how Finance Company (NASDAQ: HRZN) (“Horizon,” “We,” “Our” or the “Enterprise”), a top specialty finance enterprise that supplies money in the sort of secured financial loans to enterprise cash backed organizations in the engineering, lifetime science, healthcare data and companies, and sustainability industries, these days supplied its portfolio update for the fourth quarter ended December 31, 2020.
“We are pleased to have accomplished a incredibly solid quarter of portfolio advancement, originating $77 million of loans to both of those new and current portfolio organizations,” reported Gerald A. Michaud, President of Horizon. “In spite of a challenging environment, Horizon’s model and platform have been equipped to attract and discover excellent financial commitment options in organizations with unique and revolutionary technologies, adept management and fantastic advancement prospective. On top of that, the $17 million in personal loan prepayments we obtained during the quarter demonstrates the potential of our good quality portfolio organizations to finish exit transactions, which deliver accelerated money to Horizon. We retain a strong backlog and increasing pipeline of new expenditure opportunities, positioning Horizon for ongoing progress as we begin the new yr.”
Fourth Quarter 2020 Portfolio Update
Originations
Horizon funded 9 financial loans for the duration of the fourth quarter of 2020 totaling $76.6 million, including:
- $18. million to a new portfolio firm, Getaround, Inc., a peer-to-peer auto sharing platform.
- $13. million to a new portfolio enterprise, Alula, Inc., a designer and producer of protection techniques offered solely to qualified distributors and dealers.
- $10. million to a new portfolio corporation, a developer of a software program-defined composable infrastructure system.
- $10. million to a new portfolio organization, a developer of know-how that can identify any microbe in buy to accelerate therapy and increase public health.
- $10. million to an existing portfolio firm, Magnolia Healthcare Systems, Inc., a developer of an Fda-cleared high-precision blood tradition selection professional medical machine.
- $7.5 million to a new portfolio organization, Sonex Overall health, Inc., a developer of technology, training and teaching packages for ultrasound guided treatments.
- $5. million to a new portfolio company, Corinth Medtech, Inc., a developer of an Fda-cleared machine for treating symptoms similar to Benign Prostatic Hyperplasia (BPH).
- $2.5 million to a new portfolio enterprise, Canary Professional medical, Inc., a medical knowledge enterprise increasing healthcare outcomes with its proprietary wise clinical devices.
- $.6 million to an existing Horizon portfolio company.
Liquidity Functions
Horizon skilled liquidity functions from a few portfolio corporations in the fourth quarter of 2020, which include principal prepayments of $17.3 million, as effectively as a good results cost, warrant proceeds and equity totaling $1.4 million, as opposed to $43.1 million of principal prepayments and $1.8 million of warrant proceeds all through the 3rd quarter of 2020:
- In November, Horizon received proceeds and fairness totaling $1.3 million upon the exercising and sale of warrants, as nicely as the recognition of a results price totaling $.1 million, in ShopKeep, Inc. (“ShopKeep”). Horizon carries on to keep warrants in ShopKeep.
- In December, Mohawk Group Holdings (“Mohawk”) (NASDAQ: MWK) pay as you go its outstanding principal equilibrium of $13. million on its venture mortgage, furthermore interest, conclusion-of-term payment and prepayment cost. Horizon carries on to keep warrants in Mohawk.
- In December, Vero Biotech, LLC (“Vero”) pay as you go its superb principal balance of $4.3 million on its undertaking financial loan, in addition interest, conclusion-of-phrase payment and prepayment payment. Horizon carries on to maintain warrants in Vero.
Principal Payments Obtained
All through the fourth quarter of 2020, Horizon acquired routinely scheduled principal payments on investments totaling $4.5 million, as opposed to routinely scheduled principal payments totaling $5.9 million all through the 3rd quarter of 2020.
Commitments
In the course of the fourth quarter finished December 31, 2020, Horizon shut new mortgage commitments totaling $103.1 million to eight firms, when compared to new financial loan commitments of $21. million to 4 organizations in the 3rd quarter of 2020.
Pipeline
As of December 31, 2020, Horizon’s unfunded loan approvals and commitments (“Fully commited Backlog”), all priced at floating interest rates, were $106.5 million to 16 companies. This compares to a Fully commited Backlog of $95.9 million to 13 businesses as of September 30, 2020. Although Horizon’s portfolio corporations have discretion whether or not to attract down this kind of commitments, the suitable of a portfolio firm to draw down its commitment is often subject matter to accomplishment of particular milestones and other circumstances to borrowing.
Capital Marketplaces Action – Warrant and Fairness Portfolio
As of December 31, 2020, Horizon held a portfolio of warrant and equity positions in 69 portfolio businesses, together with 58 private firms, which delivers the opportunity for potential additional returns to Horizon’s shareholders.
About Horizon Technological know-how Finance
Horizon Know-how Finance Corporation (NASDAQ: HRZN) is a top specialty finance corporation that provides money in the sort of secured financial loans to undertaking cash backed providers in the technology, lifestyle science, healthcare data and expert services, and sustainability industries. The financial investment objective of Horizon is to increase its expenditure portfolio’s return by generating present-day money from the debt investments it helps make and cash appreciation from the warrants it gets when building these credit card debt investments. Headquartered in Farmington, Connecticut, Horizon also has regional places of work in Pleasanton, California and Reston, Virginia. To find out a lot more, please visit www.horizontechfinance.com.
Forward-Seeking Statements
Statements incorporated herein may represent “forward-wanting statements” within the that means of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historic details bundled in this push release may constitute ahead-searching statements and are not guarantees of long term functionality, issue or benefits and entail a amount of threats and uncertainties. Genuine effects may differ materially from those people in the forward-on the lookout statements as a result of a amount of variables, together with individuals described from time to time in Horizon’s filings with the Securities and Exchange Fee. Horizon undertakes no obligation to update any ahead-looking assertion designed herein. All forward-searching statements speak 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
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