Q3 2025 Horizon Technology Finance Corp Earnings Call Transcript
Key Points
- Horizon Technology Finance Corp (HRZN) announced a merger with MRCC, expected to significantly increase assets under management and provide greater economies of scale.
- The company achieved a 5% growth in NAV per share to $7.12, supported by favorable outcomes with challenged portfolio companies.
- Horizon Technology Finance Corp (HRZN) maintained a high portfolio yield on debt investments, among the top in the BDC industry.
- The company successfully raised $40 million through the issuance of 5.5% unsecured convertible notes due 2030, strengthening its balance sheet.
- Horizon Technology Finance Corp (HRZN) has a robust pipeline of larger potential venture debt transactions, supported by its relationship with Monroe Capital.
- The merger with MRCC is delayed due to the federal government shutdown, now expected to complete in early 2026.
- The company's net leverage decreased to 0.94:1, below the target leverage of 1.2 to 1.3 times net of cash.
- Prepayment activity was high in the third quarter, totaling $50 million, which may impact future income stability.
- The company's NAV per share decreased from $9.06 in September 2024 to $7.12 in September 2025.
- Horizon Technology Finance Corp (HRZN) is trading below book value, limiting its ability to utilize the ATM program for raising equity.
Ladies and gentlemen, greetings, and welcome to the Horizon Technology Finance Corporation third-quarter earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today, Megan Bacon. Please go ahead.
Thank you, and welcome to Horizon Technology Finance Corporation's third-quarter 2025 conference call. Representing the company today are Mike Balkin, Chief Executive Officer; Paul Seitz, Chief Investment Officer; and Dan Trolio, Chief Financial Officer. I would like to point out that the Q3 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 regard to the future performance of the company. Words such as believes, expects, anticipates,
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