Horizon Technology Finance Corp. has broadened its portfolio of investments with major funding for diverse industries including a music streaming business, a biopharmaceutical company developing therapeutics for the treatment of diseases, and a global provider of A2P (application-to-person) text messaging among others.
The Farmington investment firm specializes in secured loans to venture capital backed companies in the technology, life science, healthcare information and services and cleantech industries. During the third quarter, Horizon experienced liquidity events from eight portfolio companies, increasing the total number of portfolio companies with liquidity events to 14 for the year.
“The third quarter reflected a solid period of fundings as we originated $33 million of loans to eight portfolio companies, achieving another quarter of portfolio growth,” said Gerald A. Michaud, president of Horizon. “In addition, with strong execution of our investment strategy and an increase in mergers and acquisitions in our portfolio, we experienced eight liquidity events in the quarter. As we enter the fourth quarter, we remain disciplined in originating new loans with a firm focus on strong credit quality and high on-boarding yields.”
Horizon experienced early pay-offs during the third quarter of 2015 totaling $16.4 million, compared to early pay-offs totaling $5.4 million during the second quarter of 2015. During the third quarter of 2015, Horizon received regularly scheduled principal payments on investments totaling $5.8 million compared to regularly scheduled principal payments totaling $5.4 million during the second quarter of 2015.
Horizon stock has a 52-week range of $9.04 to $14.59. It closed trading yesterday at $9.98. Horizon stock’s one-year target estimate is $14.18 a share.
