Horizon Technology Finance Corporation · NASDAQ:HRZN
Horizon Technology Finance — Merger or Acquisition (August 2025)
14 slides from Horizon Technology Finance's merger presentation, Aug 7, 2025
Slide 1: Overview of Merger Between Horizon Technology Finance Corporation and Monroe Capital Corporation
Ex pe rien ce | S ecu rity | Co n si sten cy Overview of Merger Between Horizon Technology Finance Corporation (HRZN) and Monroe Capital Corporation (MRCC) August 7, 2025 1
Slide 2: Forward-Looking Statements and Disclaimers
Forward-Looking Statements and Disclaimers Unless otherwise stated, all financial information and other data presented in this presentation is as of June 30, 2025. Forward-Looking Statements No Offer to Solicitation Some of the statements in this presentation constitute forward-looking statements be
Slide 3: Monroe Capital Drives Strategic BDC Consolidation to Enhance Scale and Unlock Shareholder Value
Monroe Capital Drives Strategic BDC Consolidation to Enhance Scale and Unlock Shareholder Value Monroe Capital LLC has announced a proposed merger (the Merger) between Monroe Capital Corporation (MRCC) (NASDAQ: MRCC) and Horizon Technology Finance Corporation (HRZN) (NASDAQ: HRZN) In connection with
Slide 4: Anticipated Benefits of Proposed Merger to Shareholders
Proprietary, Trade Secret & Confidential For professional & eligible investor use only Anticipated Benefits of Proposed Merger to Shareholders Transaction Structure The Merger will be executed through a concurrent two-step transaction: 1) MRCC will sell its assets at fair value to MCIP • Following t
Slide 5: Key Transaction Elements
Key Transaction Elements • The combined company’s investment adviser, HTFM, has agreed to waive an aggregate amount of $4.0 million of management fees and Adviser Fee incentive fees: up to $1.0 million per fiscal quarter for the first four full fiscal quarters following the closing of the Transactio
Slide 6: Step 1: MRCC Asset Sale: Premium Price, Future Upside
Proprietary, Trade Secret & Confidential For professional & eligible investor use only Anticipated Benefits Step 1: MRCC Asset Sale: of Proposed Premium Price,Merger to Shareholders Future Upside MRCC shareholders realize immediate 33% NAV premium to current trading price1 and gain long-term upside
Slide 7: Step 2: HRZN Merger: Increasing Scale and Unlocking Long-Term Value
Step 2: HRZN Merger: Increasing Scale and Unlocking Long-Term Value Enhanced Scale Boosts HRZN’s scale, adding ~$165M1 in equity for a pro forma NAV of ~$446M2 as of June 30, 2025. The larger platform is expected to generate meaningful cost synergies Expected to be neutral to the combined company’s
Slide 8: Well-Positioned to Grow Long-Term
Well-Positioned to Grow Long-Term Strengthened Broaden and Enhance Ramp Deployment Aligned with Leadership Investment Mandate Plan Shareholders Appointments of 35-year HRZN will maintain its HRZN will scale its platform Management and financial veteran Michael leadership in venture debt through new
Slide 9: Reduced Operating Costs
Proprietary, Trade Secret & Confidential For professional & eligible investor use only Anticipated Benefits Reduced Operating Costsof Proposed Merger to Shareholders • Estimated annualized G&A expense savings of $2.5 million in the Estimated Cost Savings first year, equating to a 30% expense reducti
Slide 10: Illustrative NAV for NAV Exchange
Illustrative NAV for NAV Exchange HRZN NAV Per Share1 $6.70 MRCC NAV Per Share2 $7.58 to $7.62 Applicable Exchange Ratio Formula Exchange Ratio = MRCC NAV Per Share / HRZN NAV Per Share Illustrative Exchange Ratio $7.58 to $7.62 / $6.70 = 1.1313 to 1.1373 shares of HRZN per MRCC share Based on the a
Slide 11: HRZN & MRCC Potential Merger Timeline
Expected Transaction Timeline HRZN & MRCC Potential Merger Timeline August 2025 August 2025 October 2025 December 2025 December 2025 Transaction Proxy Shareholder SEC Filing Deal Closes Announced Approval Meeting The Transactions are Joint proxy SEC approves the Joint shareholder The Transactions ar
Slide 12: Appendix
Appendix 12
Slide 13: Monroe Capital at a Glance
Monroe Capital at a Glance Monroe Capital is a $21.6 billion3 diversified private credit solutions provider. While protecting client capital against loss is at the heart of the Monroe ethos, it’s been our ability to consistently attract high-quality deal flow that has enabled the Firm’s nearly two d
Slide 14: Disclaimer Notice
Disclaimer Notice Third Party Recognitions and Rankings From time to time, Monroe Capital Management Advisors, LLC, Monroe Capital, LLC and their affiliates (collectively, “Monroe Capital”) may be recognized or ranked by independent third-party rating services or publications, summaries of which may
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