Horizon Technology Finance Provides First Quarter 2019 Portfolio Update
"We had a strong start to 2019 as we built upon the success of our prior year and the robust demand for our venture debt loans from both new and existing portfolio companies," said
Horizon funded six loans during the first quarter of 2019 totaling
$15.0 millionto a new portfolio company, Mustang Bio, Inc., a clinical-stage biopharmaceutical company focused on translating today's medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors and rare genetic diseases. $10.0 millionto a new portfolio company, a leading provider of critical power analytics and facility management services. $8.5 millionto a new portfolio company, Betabrand Corporation, a crowdfunded online clothing community that designs, manufactures, and consistently releases new products. $2.5 millionto an existing portfolio company, New Signature US, Inc.("New Signature"), a leading cloud-first, full-service Microsoftprovider and consultancy that delivers professional and managed services to a global client base; including $1.5 millionof which Horizon funded to Horizon Secured Loan Fund I ("HSLFI"), a joint venture, for its investment in New Signature. $2.5 millionto an existing portfolio company, Catasys, Inc., a leading AI and technology-enabled healthcare company. $1.7 millionto an existing portfolio company, IntelePeer Holdings, Inc.("IntelePeer"), a leading provider of business communications; including $0.6 millionof which Horizon funded to HSLFI for its investment in IntelePeer.
Horizon experienced liquidity events from three portfolio companies in the first quarter of 2019, which encompassed outstanding principal prepayments of
- In February,
Rocket Lawyer Incorporated("Rocket Lawyer") prepaid its outstanding principal balance of $9.7 millionon its venture loan, plus interest, end-of-term payment and prepayment fee. Horizon continues to hold warrants in Rocket Lawyer.
- In February,
Luxtera, Inc., in connection with its sale to Cisco, prepaid its outstanding principal balance of $3.5 millionon its venture loan, plus interest and prepayment fee, and Horizon received proceeds of approximately $0.8 millionin connection with the termination of Horizon's warrants.
- In February, Horizon received proceeds of approximately
$1.0 millionupon the sale of Horizon's equity investment in Insmed Incorporated.
Subsequent to the first quarter:
- Horizon funded a
$15.0 millionloan to a new portfolio company, Encore Dermatology, Inc., a specialty pharmaceutical company focused on the U.S. dermatology market. Powerhouse Dynamics, Inc.("Powerhouse") prepaid its outstanding principal balance of $0.4 millionon its venture loan, plus interest and prepayment fee. Powerhouse also completed a sale transaction from which Horizon received proceeds of approximately $0.1 millionin connection with the termination of Horizon's warrants in Powerhouse.
Principal Payments Received
During the first quarter of 2019, Horizon received regularly scheduled principal payments on investments totaling
During the first quarter ended
Capital Markets Activity, Warrant and Equity Portfolio
During the first quarter, the Company successfully completed an accretive common equity offering at a premium to NAV, generating
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Horizon's filings with the