Q2 2024 Horizon Technology Finance Corp Earnings Call Transcript
Key Points
- Horizon Technology Finance Corp (HRZN) reported a strong portfolio yield of 15.9% for the quarter, one of the highest in the BDC industry.
- The company has a robust pipeline of $1.7 billion, indicating strong future growth potential.
- HRZN has strengthened its liquidity and balance sheet, with $150 million of available liquidity as of June 30.
- The company completed amendments to key credit facilities, reducing cost of capital and increasing credit availability.
- HRZN's management team has extensive experience, with an average tenure of over 20 years in the venture lending business.
- The portfolio size reduced in the second quarter due to modest originations and prepayments.
- There is a significant lack of exit opportunities for VC-backed tech and life science companies, affecting the venture ecosystem.
- The macro environment continues to hamper the recovery of certain stressed assets in HRZN's portfolio.
- Prepayments are not yet driven by IPOs and M&A activity, indicating a slow return to historical market behavior.
- The company's NAV decreased to $9.12 per share from $9.64 in the previous quarter, primarily due to paid distributions and fair value adjustments.
Ladies and gentlemen, good morning, and welcome to the Horizon Technology Finance Corporation second quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Ms. Meg Bacon, Director, IR and Marketing. Please go ahead.
Thank you, and welcome to Horizon Technology Finance Corporation second quarter 2024 conference call. Representing the company today are Rob Pomeroy, Chairman and Chief Executive Officer; Jerry Michaud, President; Dan Devorsetz, Chief Operating Officer and Chief Investment Officer; and Dan Trolio, Chief Financial Officer.
I would like to point out that the Q2 earnings press release and Form 10-Q are available on the company's website at horizontechfinance.com. Before we begin our formal remarks, I need to remind everyone that during this conference call, the company will make certain forward-looking statements, including statements with
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