Horizon Technology Finance Corp. (HRZN, Financial) filed Quarterly Report for the period ended 2012-09-30.
Horizon Technology Finance Corp has a market cap of $154.9 million; its shares were traded at around $16.54 with a P/E ratio of 10.3 and P/S ratio of 6.4. The dividend yield of Horizon Technology Finance Corp stocks is 11.1%.
The performance based incentive fee expense was approximately $0.7 million and $0.6 million for the three months ended September 30, 2012 and 2011, respectively. The performance based incentive fee expense was approximately $2.0 million and $2.7 million for the nine months ended September 30, 2012 and 2011, respectively. The incentive fee payable as of September 30, 2012 and December 31, 2011 was $0.7 million and $1.8 million, respectively. The incentive payable as of September 30, 2012 includes $0.7 million for part one and no accrual for part two of the incentive fee. The incentive fee payable as of December 31, 2011 included $1.4 million for part one and $0.4 million for part two of the incentive fee.
The Company entered into a revolving credit facility (the “WestLB Facility”) with WestLB, AG, New York Branch (“WestLB”) effective March 4, 2008. The WestLB Facility had a three year initial revolving term and on March 3, 2011, the revolving term ended. The outstanding principal balance of the WestLB Facility is amortizing based on loan investment payments received through March 3, 2015. The interest rate is based upon the one-month LIBOR (0.21% as of September 30, 2012 and 0.30% as of December 31, 2011) plus a spread of 2.50%. The rates at September 30, 2012 and December 31, 2011 were 2.71% and 2.80%, respectively. The average rates for the three months ended September 30, 2012 and 2011 were 2.79%, and 2.76%, respectively. The average rates for the nine months ended September 30, 2012 and 2011 were 2.79% and 2.78%, respectively.
The Company entered into a term loan credit facility (the “Fortress Facility”) with Fortress Credit Co LLC effective August 23, 2012. The Fortress Facility contains covenants that, among other things, require the Company to maintain a minimum net worth and to restrict the loans securing the Fortress Facility to certain criteria for qualified loans and includes portfolio company concentration limits as defined in the related loan agreement. The Fortress Facility, among other things, has a three-year term subject to two one-year extensions with a draw period of up to four years. The Fortress Facility requires the payment of an unused line fee of 1.00% annually beginning October 1, 2012 and has an effective advance rate of approximately 66% against eligible loans. The Fortress Facility generally bears interest based upon the one-month LIBOR plus a spread of 6.00%, with a LIBOR floor of 1.00%. The rate at September 30, 2012 was 7.00%, and the average rate for the period within the three months ended September 30, 2012, in which the loan was outstanding, was 7.00%. The average amount of borrowings was approximately $10.0 million for the period within the three months ended September 30, 2012 in which the loan was outstanding. The average rate and average borrowings for the nine months ended September 30, 2012 is not meaningful because the Fortress Facility was outstanding for only a short duration during that period. At September 30, 2012, the Company had actual borrowings outstanding of approximately $10.0 million on the Fortress Facility.
On October 14, 2008, the Company entered into two interest rate swap agreements (collectively, the “Swap”) with WestLB, fixing the rate of $10 million at 3.58% and $15 million at 3.20% on the first advances of a like amount of variable rate WestLB Facility borrowings. The $15 million interest rate swap expired in October 2010 and the $10 million interest rate swap expired in October 2011. The objective of the Swap was to hedge the risk of changes in cash flows associated with the future interest payments on the first $25 million of the variable rate WestLB Facility debt with a combined notional amount of $25 million.
Read the The complete Report
Horizon Technology Finance Corp has a market cap of $154.9 million; its shares were traded at around $16.54 with a P/E ratio of 10.3 and P/S ratio of 6.4. The dividend yield of Horizon Technology Finance Corp stocks is 11.1%.
Highlight of Business Operations:
The first part is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees received from portfolio companies) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, expenses payable under the administration agreement (as defined below), and any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we have not yet received in cash. The incentive fee with respect to the pre-incentive fee net investment income is 20.00% of the amount, if any, by which the pre-incentive fee net investment income for the immediately preceding calendar quarter exceeds a 1.75% (which is 7.00% annualized) hurdle rate and a “catch-up” provision measured as of the end of each calendar quarter. Under this provision, in any calendar quarter, the Advisor receives no incentive fee until the net investment income equals the hurdle rate of 1.75%, but then receives, as a “catch-up,” 100.00% of the pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.1875%. The effect of this provision is that, if pre-incentive fee net investment income exceeds 2.1875% in any calendar quarter, the Advisor will receive 20.00% of the pre-incentive fee net investment income as if a hurdle rate did not apply.The performance based incentive fee expense was approximately $0.7 million and $0.6 million for the three months ended September 30, 2012 and 2011, respectively. The performance based incentive fee expense was approximately $2.0 million and $2.7 million for the nine months ended September 30, 2012 and 2011, respectively. The incentive fee payable as of September 30, 2012 and December 31, 2011 was $0.7 million and $1.8 million, respectively. The incentive payable as of September 30, 2012 includes $0.7 million for part one and no accrual for part two of the incentive fee. The incentive fee payable as of December 31, 2011 included $1.4 million for part one and $0.4 million for part two of the incentive fee.
The Company entered into a revolving credit facility (the “WestLB Facility”) with WestLB, AG, New York Branch (“WestLB”) effective March 4, 2008. The WestLB Facility had a three year initial revolving term and on March 3, 2011, the revolving term ended. The outstanding principal balance of the WestLB Facility is amortizing based on loan investment payments received through March 3, 2015. The interest rate is based upon the one-month LIBOR (0.21% as of September 30, 2012 and 0.30% as of December 31, 2011) plus a spread of 2.50%. The rates at September 30, 2012 and December 31, 2011 were 2.71% and 2.80%, respectively. The average rates for the three months ended September 30, 2012 and 2011 were 2.79%, and 2.76%, respectively. The average rates for the nine months ended September 30, 2012 and 2011 were 2.79% and 2.78%, respectively.
The Company entered into a term loan credit facility (the “Fortress Facility”) with Fortress Credit Co LLC effective August 23, 2012. The Fortress Facility contains covenants that, among other things, require the Company to maintain a minimum net worth and to restrict the loans securing the Fortress Facility to certain criteria for qualified loans and includes portfolio company concentration limits as defined in the related loan agreement. The Fortress Facility, among other things, has a three-year term subject to two one-year extensions with a draw period of up to four years. The Fortress Facility requires the payment of an unused line fee of 1.00% annually beginning October 1, 2012 and has an effective advance rate of approximately 66% against eligible loans. The Fortress Facility generally bears interest based upon the one-month LIBOR plus a spread of 6.00%, with a LIBOR floor of 1.00%. The rate at September 30, 2012 was 7.00%, and the average rate for the period within the three months ended September 30, 2012, in which the loan was outstanding, was 7.00%. The average amount of borrowings was approximately $10.0 million for the period within the three months ended September 30, 2012 in which the loan was outstanding. The average rate and average borrowings for the nine months ended September 30, 2012 is not meaningful because the Fortress Facility was outstanding for only a short duration during that period. At September 30, 2012, the Company had actual borrowings outstanding of approximately $10.0 million on the Fortress Facility.
On October 14, 2008, the Company entered into two interest rate swap agreements (collectively, the “Swap”) with WestLB, fixing the rate of $10 million at 3.58% and $15 million at 3.20% on the first advances of a like amount of variable rate WestLB Facility borrowings. The $15 million interest rate swap expired in October 2010 and the $10 million interest rate swap expired in October 2011. The objective of the Swap was to hedge the risk of changes in cash flows associated with the future interest payments on the first $25 million of the variable rate WestLB Facility debt with a combined notional amount of $25 million.
Read the The complete Report
