Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN”), an affiliate of Monroe Capital LLC, today announced its Board of Directors’ intent to supplement HRZN’s regular monthly distributions to HRZN stockholders following the closing of the pending merger (the “Merger”) between HRZN and Monroe Capital Corporation (“MRCC”). As previously announced, following the Merger, HRZN will be the surviving public entity and will continue to be managed by Horizon Technology Finance Management LLC (“HTFM”) and trade on the NASDAQ under the symbol “HRZN”.
To create near-term value for the post-Merger combined company stockholders, the HRZN Board intends to use HRZN’s current undistributed taxable earnings (i.e., spillover income) of $27.6 million as of December 31, 2025 to supplement HRZN’s regular monthly distributions for two quarters following the closing of the Merger (the “HRZN Supplemental Distributions”), subject to the closing of the Merger and the HRZN Board’s declaration of the distributions.
HRZN anticipates that the HRZN Supplemental Distributions for the first quarter post-closing will be in the range of at least $0.02 to $0.04 per share per month. In its consideration of declaration of any HRZN Supplemental Distributions, the HRZN Board will consider, among other things, (1) HRZN’s ongoing compliance with asset coverage ratio requirements under the Investment Company Act of 1940, (2) HRZN’s compliance with applicable financial and other operating covenants under HRZN’s financing agreements, and (3) HRZN’s general investment performance and available liquidity, as well as general market conditions at the time.