Key Points – Portfolio growth continued after the Monroe merger: Horizon funded nine debt investments totaling $73 million, increased its debt portfolio 4% to $682 million, and expanded its committed and approved backlog to $228 million. – NAV fell to $6.23 per share from $6.98…
cause Horizon wrote off its $20 million equity stake in Soli and recorded an additional $19 million debt write-down. Net investment income declined to $0.11 per share, or $0.18 excluding one-time merger expenses. – Horizon ended the quarter with $229 million in liquidity and $459 million of potential investment capacity, while repurchasing 1.4 million shares and authorizing an additional $20 million buyback
Management expects continued portfolio growth and aims for earnings to cover distributions over time. Horizon Technology Finance (NASDAQ:HRZN) said its second-quarter net asset value declined primarily because of write-downs tied to one portfolio company, even as the business development company expanded its debt investment portfolio for a third consecutive quarter and reported a larger committed backlog following its April merger with Monroe Capital Corporation. Chief Executive Officer Mike Balkin said the merger increased the company’s available investment capital and marked the beginning of a new growth phase.
He said Horizon has been investing in underwriting, credit capabilities, technology, personnel and its origination platform as it seeks to grow its portfolio, increase net investment income, and build shareholder value over time. Portfolio Growth Offset by Soli Write-Downs Horizon funded nine debt investments totaling $73 million during the second quarter and ended the period with a total investment portfolio valued at $677 million. Its debt investment portfolio, measured on a net-cost basis, increased 4% from the prior quarter to $682 million, according to Chief Financial Officer Dan Trolio.