Horizon Technology Finance Corporation (NASDAQ: HRZN) announced its board of directors intends to supplement regular monthly distributions to stockholders following its pending merger with Monroe Capital Corporation (MRCC).

The company plans to use $27.6 million in undistributed taxable earnings as of December 31, 2025, to provide supplemental distributions for two quarters after the merger closes. HRZN anticipates the supplemental distributions for the first quarter post-closing will range from at least $0.02 to $0.04 per share per month.

The supplemental distributions are subject to the merger closing and board declaration, with consideration given to asset coverage ratio requirements, financing agreement compliance, and investment performance.

Monroe Capital Corporation separately announced its intent to increase its final special distribution to legacy MRCC stockholders by $13.0 million ($0.61 per share), contingent upon stockholder approval of the merger. This supplemental distribution would be in addition to MRCC's planned pre-merger distribution of $2.9 million ($0.14 per share) in undistributed taxable earnings.

The pre-merger distribution will be funded from proceeds of MRCC's sale of substantially all its assets to Monroe Capital Income Plus Corporation, a privately offered business development company within the Monroe Capital platform.

Following the merger, HRZN will be the surviving public entity and will continue trading on NASDAQ under the symbol HRZN, managed by Horizon Technology Finance Management LLC.

HRZN has scheduled a special stockholder meeting for March 13, 2026, at 2:30 p.m. ET to vote on the merger.

The information is based on a company press release.