– Originates $67.3 Million of New Loans –
– Grows Debt Portfolio Quarter-over-Quarter –
– Document Dedicated Backlog of $143.5 Million –
FARMINGTON, Conn., July 7, 2021 /PRNewswire/ — Horizon Know-how Finance Company (NASDAQ: HRZN) (“Horizon,” “We,” “Our” or the “Firm”), a number one specialty finance firm that gives capital within the type of secured loans to enterprise capital backed corporations within the expertise, life science, healthcare data and providers, and sustainability industries, immediately offered its portfolio replace for the second quarter ended June 30, 2021.
“The second quarter was very productive for Horizon, because it originated over $67 million of loans to new and current portfolio corporations,” mentioned Gerald A. Michaud, President of Horizon. “Horizon additionally accomplished the quarter with a file dedicated backlog of $143.5 million of debt investments. The enterprise lending model and platform of Horizon and its funding adviser, Horizon Know-how Finance Administration LLC (“HTFM”), continues to resonate with rising and revolutionary corporations and their buyers. Along with its originations and backlog success, Horizon acquired $38 million in mortgage prepayments throughout the quarter, which is a testomony to the success of our predictive pricing technique. The prepayments offered Horizon with further price earnings and accelerated curiosity earnings. With Horizon’s dedicated backlog and HTFM’s deep pipeline of recent funding alternatives for Horizon, we anticipate to proceed driving portfolio progress and extra worth to Horizon’s shareholders within the second half of 2021.”
Second Quarter 2021 Portfolio Replace
In the course of the second quarter of 2021, a complete of $99.3 million of loans funded via the HTFM platform, together with 9 loans totaling $67.3 million funded by Horizon as follows:
$22.5 million to a brand new portfolio firm which goals to construct, personal and function the primary industrial house station.
$12.5 million to a brand new portfolio firm, Cerecor, Inc., a biopharmaceutical firm centered on growing and commercializing remedies for uncommon pediatric and orphan ailments.
$10.0 million to an current portfolio firm, an innovator in digital well being and distant affected person monitoring, specializing in offering cardiac displays.
$7.5 million to a brand new portfolio firm, TemperPack Applied sciences, Inc., a producer of sustainable insulated packaging for perishable final mile deliveries.
$5.0 million to a brand new portfolio firm, a developer of next-generation bispecific immunotherapies for most cancers.
$5.0 million to an current portfolio firm, Provivi, Inc., a developer of cost-effective pure crop safety merchandise which make the most of pheromones to disrupt the standard insect mating cycle.
$2.5 million to a brand new portfolio firm, a developer of reasonably priced, direct-to-consumer electrical scooters.
$2.0 million to a brand new portfolio firm, LiquiGlide, Inc., a developer of frictionless expertise that eliminates product and packaging waste.
$0.3 million to an current portfolio firm.
Horizon skilled liquidity occasions from 5 portfolio corporations within the second quarter of 2021, together with principal prepayments of $38.1 million and receipt of warrant and fairness proceeds totaling $2.8 million, in comparison with $17.2 million of principal prepayments and $0.8 million of warrant proceeds throughout the first quarter of 2021:
In April, Kate Farms, Inc. pay as you go its excellent principal steadiness of $15.0 million on its enterprise mortgage, plus curiosity, end-of-term fee and prepayment price. Horizon continues to carry warrants within the firm.
In April, xAD, Inc. pay as you go its excellent principal steadiness of $8.1 million on its enterprise mortgage, plus curiosity, end-of-term fee and prepayment price. Horizon continues to carry warrants within the firm.
In June, Horizon acquired proceeds of $1.2 million from the sale of its fairness in Lightspeed POS Inc. (NYSE: LSPD).
In June, Keypath Training Holdings, Inc. pay as you go its excellent principal steadiness of $10.0 million on its enterprise mortgage, plus curiosity, end-of-term fee and prepayment price. Horizon additionally acquired proceeds totaling $1.6 million from the redemption of warrants it held within the firm.
In June, Celsion Company pay as you go its excellent principal steadiness of $5.0 million on its enterprise mortgage, plus curiosity, end-of-term fee and prepayment price. Horizon continues to carry warrants within the firm.
Principal Funds Obtained
In the course of the second quarter of 2021, Horizon acquired recurrently scheduled principal funds on investments totaling $3.0 million, in comparison with recurrently scheduled principal funds totaling $4.7 million throughout the first quarter of 2021.
In the course of the quarter ended June 30, 2021, Horizon closed new mortgage commitments totaling $96.8 million to eight corporations, in comparison with new mortgage commitments of $48.5 million to 6 corporations within the first quarter of 2021.
Pipeline and Time period Sheets
As of June 30, 2021, Horizon’s unfunded mortgage approvals and commitments (“Dedicated Backlog”), all priced at floating rates of interest, had been $143.5 million to 21 corporations. This compares to a Dedicated Backlog of $94.0 million to 18 corporations as of March 31, 2021. Horizon’s portfolio corporations have discretion whether or not to attract down such commitments and the fitting of a portfolio firm to attract down its dedication is usually topic to achievement of particular milestones and different situations to borrowing.
In the course of the quarter, HTFM signed time period sheets which can lead to Horizon and HTFM’s different managed funds offering as much as an mixture of $174.0 million of recent debt investments. Horizon and such funds ended the quarter with $174.0 million of unfunded mortgage approvals and commitments. These alternatives are topic to underwriting situations 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 is no such thing as a assurance that all or any of those transactions can be accomplished or funded by Horizon.
Capital Markets Exercise – Warrant and Fairness Portfolio
As of June 30, 2021, Horizon held a portfolio of warrant and fairness positions in 72 portfolio corporations, together with 61 non-public corporations, which offers the potential for future further returns to Horizon’s shareholders.
About Horizon Know-how Finance
Horizon Know-how Finance Company (NASDAQ: HRZN) is a number one specialty finance firm that gives capital within the type of secured loans to enterprise capital backed corporations within the expertise, life science, healthcare data and providers, and sustainability industries. The funding goal of Horizon is to maximise its funding portfolio’s return by producing present earnings 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 Portland, Maine, Austin, Texas, and Reston, Virginia. To study extra, please go to www.horizontechfinance.com.
Statements included herein could represent “forward-looking statements” inside the that means of the Personal Securities Litigation Reform Act of 1995. Statements aside from statements of historic details included on this press launch could represent forward-looking statements and are usually not ensures of future efficiency, situation or outcomes and contain various dangers and uncertainties. Precise outcomes could differ materially from these within the forward-looking statements on account of various elements, together with these described occasionally in Horizon’s filings with the Securities and Change Fee. Horizon undertakes no responsibility to replace any forward-looking assertion made herein. All forward-looking statements communicate solely as of the date of this press launch.
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SOURCE Horizon Know-how Finance Company