Horizon Technology Finance Corporation (HRZN) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

merge with and into Horizon through a NAV for NAV share exchange based on the net asset values of each entity determined shortly before the closing date. We believe the merger creates a true win-win for both sets of shareholders. MRCC shareholders will receive shares of common stock in Horizon, with Horizon receiving a corresponding estimated $165 million cash infusion in exchange for those shares. Horizon will be the surviving public entity and will continue to both be managed by Horizon Technology Finance Management, or HTFM, a Monroe affiliated investment advisor, and trade on the NASDAQ under its ticker symbol HRZM. It is important to note that the transactions which we expect to close in December 2025 will be conditioned on the concurrent closing of both the asset sale and the merger as well as receipt of necessary regulatory approvals and applicable approvals of both the MRCC and Horizon shareholders. Slide 5 summarizes the key elements of the transaction which focus on shareholder alignment and protection. In connection with and in support of the transaction, HTFM, the external advisor and the investment advisor of the combined HRZM company has agreed to waive an aggregate amount up to $4 million in advisory fees over the first four full fiscal quarters following the closing, up to $1 million per quarter. These advisory fee waivers are meant to support core net investment income while Horizon focuses on selectively and efficiently deploying the incremental capital to execute its strategic growth initiatives. The fee waivers will not exceed the total amount of fees earned during the applicable quarter. Additionally, Horizon's existing stock repurchase program will remain available for open market repurchases of shares of its common stock following closing. An a...