Specialty finance company Horizon Technology Finance Corporation recently published its portfolio update for the fourth quarter of 2012. Company officials said the company’s gross new loan investment during the fourth quarter of 2012 is estimated to be around $66.5 million and the net new loan investments totaled approximately $52 million.
Gerald A. Michaud, president of Horizon, said the company is pleased to end 2012 on a strong note, as Horizon achieved record loan volumes during the fourth quarter and their sixth consecutive quarter of increased investment activity.
“As we continue to execute our investment strategy by deploying capital in a disciplined manner and expanding our high-yielding assets, we remain cautious in our outlook due to an uncertain macro environment and we experienced a typical investment pattern during the quarter with funding occurring later in the quarter and prepayments occurring throughout the quarter. During the quarter, we added a diverse mix of seven new companies to our venture loan portfolio,” said Michaud.
The company plans to continue with its high-quality loan portfolio to produce a stable stream of interest income while providing the potential to realize significant warrant gains.
“We remain focused on taking advantage of select investment opportunities that meet our underwriting and return criteria and strengthening Horizon's leading industry brand," concluded Michaud.
By the end of last year, Horizon closed new loan commitments totaling $77.4 million to 11 companies, compared to the quarter ended September 30, 2012, wherein Horizon closed new loan commitments totaling $41.3 million to six companies.
Headquartered in Farmington, Connecticut, with regional offices in Walnut Creek, California and Reston, Virginia, the company is externally managed by its investment advisor, Horizon Technology Finance Management LLC. The company has been offering secured loans to development-stage companies backed by established venture capital and private equity firms within the technology, life science, healthcare information and services and clean-tech industries.
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Edited by Rachel Ramsey