Horizon Technology Finance (HRZN) Announces Strategic Equity Partnership with Arena Investors, $100 Million Initial Debt Commitment from U.S. Based Insurance Company

June 5, 2018 4:22 PM EDT

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Horizon Technology Finance Corporation (NASDAQ: HRZN) ("Company" or "Horizon"), a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and cleantech industries, announced today that the Company has established a joint venture with Arena Investors LP ("Arena").

The newly formed joint venture, Horizon Secured Loan Fund I LLC, or "HSLF", will be owned and controlled on an equal basis by Horizon and Arena. Each of Horizon and Arena has initially committed to provide up to $25 million of equity to the joint venture, and collectively intend to contribute equity capital, in the aggregate, of up to $100 million. In order to enhance HSLF's capacity to pursue attractive origination activities, a large U.S. based insurance company ("Lender") has provided an initial $100 million senior secured debt commitment, which may be increased to $200 million with the mutual agreement of HSLF and the Lender.

"We are pleased to enter into this joint venture that should enable Horizon to expand its brand and market position alongside a strong strategic partner in Arena and a leading global financial debt partner," said Daniel R. Trolio, Chief Financial Officer of Horizon. "We believe that HSLF will enable us to diversify our investments and achieve attractive economics while maintaining a strong emphasis on credit quality. HSLF is well positioned to build a sizable, high-yielding investment portfolio that contributes to Horizon's income stream on an ongoing basis and increases our ability to capitalize on compelling venture lending opportunities."

"An essential component of Arena's investment strategy is to joint venture with like-minded investors and industry experts with domain expertise within niche and nuanced asset classes. Horizon has constructed a top tier organization that has a demonstrated ability within venture lending. We look forward to our partnership and the opportunity to further diversify and fortify our portfolio for our investors," said Scott B. Gold, Managing Director of Arena.

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