Horizon Technology Finance Announces Second Quarter 2023 Financial Results

• Net investment income ("NII") of $16.1 million, or $0.54 per share, compared to $8.6 million, or $0.35 per share for the prior-year period
• Total investment portfolio of $715.4 million as of June 30, 2023
• Net asset value of $355.4 million, or $11.07 per share, as of June 30, 2023
• Annualized portfolio yield on debt investments of 16.3% for the quarter
• HRZN funded 11 loans totaling $49.6 million
• HRZN's investment adviser, Horizon Technology Finance Management LLC ("HTFM"), originated $52.7 million through its lending platform ("Horizon Platform"), inclusive of the loans funded by Horizon
• Successfully raised $38.9 million of net proceeds in common stock offering
• Raised total net proceeds of approximately $5.1 million with "at-the-market" ("ATM") offering program
• Increased commitment of senior secured debt facility by $50 million to enable its wholly-owned subsidiary to issue up to $250 million of secured notes
• Expanded aggregate commitments under revolving credit facility from $125 million to $150 million
• Experienced liquidity events from six portfolio companies
• Cash of $50.3 million and credit facility capacity of $223.2 million as of June 30, 2023
• Held portfolio of warrant and equity positions in 97 companies as of June 30, 2023
• Undistributed spillover income of $1.02 per share as of June 30, 2023
• Subsequent to quarter end, declared distributions of $0.11 per share payable in October, November and December 2023
• On June 30, 2023, HTFM was acquired by an affiliate of Monroe Capital LLC, a premier boutique middle market asset manager

"We generated net investment income in the second quarter that once again exceeded our distributions, driven by our debt portfolio yield of over 16%," said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon. "During the quarter, we remained selective in making venture debt investment commitments to new portfolio companies, while funding and maintaining a committed backlog of debt investments to existing portfolio companies. Much of our committed backlog is subject to our portfolio companies achieving milestones. In the quarter, we also strengthened our balance sheet by receiving net proceeds of $38.9 million from the sale of our common stock in a follow-on offering and net proceeds of $5.1 million from the sale of our common stock through our ATM, while increasing the capacity of our credit facilities by $75 million."

"In terms of credit, we continue to closely work with our portfolio companies to achieve the best outcomes and, as a result, are making progress in improving our portfolio's credit profile," continued Mr. Pomeroy. "Looking ahead, with a stronger balance sheet and our disciplined underwriting, we believe we can further prudently grow HRZN's portfolio of debt investments and deliver additional value to HRZN's shareholders."

Second Quarter 2023 Operating Results

Total investment income for the quarter ended June 30, 2023 grew 51.3% to $28.1 million, compared to $18.6 million for the quarter ended June 30, 2022, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio.

The Company's dollar-weighted annualized yield on average debt investments for the quarter ended June 30, 2023 and 2022 was 16.3% and 14.2%, respectively. The Company calculates the dollar-weighted annualized yield on average debt investments for any period measured as (1) total investment income (excluding dividend income) during the period divided by (2) the average of the fair value of debt investments outstanding on (a) the last day of the calendar month immediately preceding the first day of the period and (b) the last day of each calendar month during the period. The dollar-weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors.

Total expenses for the quarter ended June 30, 2023 were $11.9 million, compared to $9.9 million for the quarter ended June 30, 2022. The increase was primarily due to a $3.0 million increase in interest expense and a $0.7 million increase in the base management fee, partially offset by a $2.0 million decrease in performance-based incentive fees. The decrease in performance-based incentive fees was related to an Incentive Fee Cap for the three months ended June 30, 2023 due to the cumulative incentive fees paid exceeding 20% of cumulative pre-incentive fee net return during the applicable quarter and the 11 preceding full calendar quarters.

Net investment income for the quarter ended June 30, 2023 was $16.1 million, or $0.54 per share, compared to $8.6 million, or $0.35 per share, for the quarter ended June 30, 2022.

For the quarter ended June 30, 2023, net realized loss on investments was $16.5 million, or $0.55 per share, compared to net realized loss on investments of $0.9 million, or $0.04 per share, for the quarter ended June 30, 2022.

For the quarter ended June 30, 2023, net unrealized appreciation on investments was $0.6 million, or $0.02 per share, compared to net unrealized depreciation on investments of less than $0.1 million for the prior-year period.

Portfolio Summary and Investment Activity

As of June 30, 2023, the Company's debt portfolio consisted of 54 secured loans with an aggregate fair value of $683.3 million. In addition, the Company's total warrant, equity and other investments in 99 portfolio companies had an aggregate fair value of $32.1 million. Total portfolio investment activity for the three and six months ended June 30, 2023 and 2022 was as follows:

($ in thousands)	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2023	2022	2023	2022
Beginning portfolio	$              715,312	$              515,009	$        720,026	$        458,075
New debt investments	50,545	159,235	97,553	253,720
Less refinanced debt balances	(10,000)	(25,000)	(10,000)	(25,000)
Net new debt investments	40,545	134,235	87,553	228,720
Principal payments received on investments	(6,075)	(4,861)	(12,890)	(6,956)
Payment-in-kind interest on investments	950	—	2,154	—
Early pay-offs and principal paydowns	(18,665)	(43,467)	(51,606)	(55,517)
Accretion of debt investment fees	1,645	1,547	3,093	2,553
New debt investment fees	(502)	(1,860)	(802)	(2,785)
Equity received in settlement of fee income	89	—	89	—
Proceeds from sale of investments	(1,986)	(22,146)	(8,506)	(43,426)
Net loss on investments	(16,529)	(929)	(16,697)	(899)
Net unrealized appreciation (depreciation) on investments	608	(36)	(6,929)	(2,273)
Other	(1)	—	(94)	—
Ending portfolio	$              715,391	$              577,492 Werbung Mehr Nachrichten zur Horizon Technology Finance Corporation Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:34 - Inult Ad-hoc am Samstag: Triggermeldung für nächste 300%-Rallye? Kursverdopplung mit Gap-Close? 03.05.24 - dpa-AFX ROUNDUP/Aktien New York Schluss: Spürbar erholt dank Apple und Jobdaten 03.05.24 - dpa-AFX Selenskyj: Stehen vor neuer Phase im Krieg InnoCan Pharma    Multi-Milliarden-Wert in diesem Pennystock?! weiterlesen» Anzeige wo-site-teaser-box-16836_site-teaser-box_2024-05-04_09%253A00%253A00_2024-05-05_09%253A00%253A59