UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 12, 2015
HORIZON TECHNOLOGY FINANCE CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 814-00802 | 27-2114934 |
|
(State or other jurisdiction of incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
312 Farmington Avenue
Farmington, CT 06032
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (860) 676-8654
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Section 1 | Registrant’s Business and Operations | |
| Item 1.01 | Entry into a Material Definitive Agreement |
On August 12, 2015, Horizon Technology Finance Corporation (the “Company”) through its wholly owned subsidiary, Horizon Credit II LLC (“Credit II”), amended its revolving credit facility (the “Credit Facility”) with KeyBank National Association (“Key”).
The amendment (1) increases the size of the Credit Facility from $50 million to $70 million by adding a $20 million commitment from AloStar Bank of Commerce, (2) extends the period during which the Company may request advances under the Credit Facility from November 4, 2016 to August 12, 2018 and (3) extends the date on which all outstanding advances under the Credit Facility are due and payable from November 4, 2018 to August 12, 2020.
As previously disclosed, the Credit Facility is collateralized by loans and warrants held by Credit II and permits an advance rate of up to 50% of eligible loans held by Credit II. The Credit Facility continues to have an accordion feature which allows for an increase in the total loan commitment to $150 million, including through the addition of new lenders. There can be no assurance that additional lenders will make any commitments under the Credit Facility.
The description of the documentation related to the Credit Facility contained in this Current Report on Form 8-K does not purport to be complete and is qualified in its entirety by reference to the underlying agreements.
On August 12, 2015, the Company issued a press release announcing its renewal and expansion of the Credit Facility, a copy of which is attached hereto as Exhibit 99.1.
| Section 9 | Financial Statements and Exhibits | |
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits.
| 99.1 | Press release of the Company dated August 12, 2015. |
| 2 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: August 12, 2015 | HORIZON TECHNOLOGY FINANCE CORPORATION | |
| By: | /s/ Robert D. Pomeroy, Jr. | |
| Robert D. Pomeroy, Jr. | ||
| Chief Executive Officer | ||
| 3 |
Exhibit 99.1
Horizon Technology Finance Announces
Extension and Expansion of Revolving Credit Facility to $70 Million
Company Extends Credit Facility; Adds $20 Million from New Lender
FARMINGTON, Conn., August 12, 2015 – Horizon Technology Finance Corporation (NASDAQ: HRZN) (the “Company” or “Horizon”), a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services and cleantech industries, today announced that its wholly owned subsidiary, Horizon Credit II LLC, has amended its syndicated revolving credit facility (“Credit Facility”) led by KeyBank National Association (“Key”).
The amendment increases the size of the Credit Facility to $70 million by adding a new $20 million commitment from AloStar Bank of Commerce. The amendment also extends (1) the period during which the Company may request advances from November 4, 2016 to August 12, 2018 and (2) the date on which all outstanding advances under the Credit Facility are due and payable from November 4, 2018 to August 12, 2020. The Credit Facility continues to have an accordion feature which allows for an increase in the total loan commitment to $150 million. There can be no assurance that any additional lenders will make any commitments under the Credit Facility.
“We are pleased to have extended and expanded our Credit Facility, which we intend to use to leverage our existing investments as well as fund new, high-quality loan opportunities,” said Christopher M. Mathieu, Senior Vice President and Chief Financial Officer. “Our ongoing relationship with Key provides Horizon with continued favorable asset eligibility at a competitive interest rate and an extension in the revolving period to three years. The addition of AloStar’s new commitment increases our borrowing capacity, which we expect will drive net investment income growth as we utilize the Credit Facility to strategically expand our investment portfolio in a disciplined manner.”
About Horizon Technology Finance
Horizon Technology Finance Corporation is a leading specialty finance company that provides capital in the form of secured loans to companies backed by venture capital firms within the technology, life science, healthcare information and services and cleantech industries. The investment objective of Horizon is to maximize total returns by generating current income from a portfolio of directly originated secured loans as well as capital appreciation from warrants that it receives when making such loans. Headquartered in Farmington, Connecticut, Horizon has regional offices in Walnut Creek, California and Reston, Virginia. Horizon's common stock trades on the NASDAQ Global Select Market under the ticker symbol "HRZN". To learn more, please visit www.horizontechnologyfinancecorp.com.
Forward-Looking Statements
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 our filings with the Securities and Exchange Commission. Horizon undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
| Contacts: | |
| Horizon Technology Finance | Investor Relations and Media Contacts: |
| Christopher M. Mathieu | The IGB Group |
| Chief Financial Officer | Matt Steinberg / Leon Berman |
| (860) 676-8653 | (212) 477-8261 / (212) 477-8438 |
| chris@horizontechfinance.com | msteinberg@igbir.com / lberman@igbir.com |