HRZN Reports $11.5M in Q2 Originations

By Bobby Samwell • Thursday, July 11 07:59 • Permanent Link

Horizon Technology Finance Corporation (NASDAQ: HRZN) has released its portfolio update for the second quarter of 2024, providing insight into the company's performance and financial metrics. Here are the key highlights:

Originations: In Q2 2024, HRZN originated a total of $11.5 million in loans and $0.5 million in equity. This included investments in various portfolio companies, such as a fulfillment and supply chain technology services company, a provider of supply chain risk management software, a builder of conservation memorial forests, and a green construction technology company.
Liquidity Events and Partial Paydowns: HRZN experienced a significant liquidity event from one portfolio company, Divergent Technologies, Inc., which paid off its outstanding principal balance of $33.8 million on its venture loan, in addition to interest, end-of-term payment, and prepayment fee. Additionally, HRZN received prepayments of principal from five portfolio companies totaling $11.4 million during the quarter.
Principal Payments Received: During Q2 2024, HRZN received regularly scheduled principal payments on investments totaling $11.8 million, indicating a positive cash flow from its portfolio companies.
Commitments: HRZN closed new loan commitments totaling $12.5 million to two companies during the quarter, compared to $37.5 million to three companies in the first quarter of 2024, reflecting a change in commitment levels.
Pipeline and Term Sheets: As of June 30, 2024, HRZN's unfunded loan approvals and commitments ("committed backlog") amounted to $137.5 million to 13 companies, compared to $168.2 million to 14 companies as of March 31, 2024, indicating a decrease in committed backlog. Additionally, HTFM received signed term sheets that are in the approval process, potentially resulting in up to an aggregate of $50.0 million of new debt investments.
Warrant and Equity Portfolio: HRZN held a portfolio of warrant and equity positions in 99 portfolio companies, including 88 private companies, as of June 30, 2024, providing potential for future additional returns to HRZN's shareholders.

These metrics provide a detailed picture of HRZN's investment activities, capital inflows, and commitments during the second quarter of 2024, showcasing the company's strategic deployment of capital and its ongoing focus on maximizing investment portfolio returns.

Today the company's shares have moved 1.2% to a price of $12.3. For more information, read the company's full 8-K submission here.

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