Venture debt provider Horizon Technology Finance Corporation?s Horizon Credit III fund, has closed a new term loan credit facility of $75m with Fortress Credit Co, an affiliate of Fortress Investment Group.
The company provides secured loans to venture capital and private equity backed development-stage companies in the technology, life science, healthcare information and services, and cleantech industries. It received an initial advance of $10m at closing.
Horizon said it intends to use the credit facility to leverage its existing investments, as well as deploy additional capital for new investments. The credit facility has a three-year term subject to two one-year extensions with a draw period of up to four years. Amounts borrowed will bear interest at LIBOR plus six per cent, with a LIBOR floor of one per cent.
The effective loan advance rate is 66 per cent of eligible loans. The new credit facility with Fortress Credit also complements the company?s existing credit facilities with Wells Fargo Capital Finance, and WestLB, both of which continue to provide leverage to the company.
Robert Pomeroy, Jr, chairman and CEO, said, ?We are pleased to close a new $75m term loan facility with Fortress Credit as we continue to take advantage of the strong demand for our venture debt products. By strategically increasing our leverage, we have further enhanced our ability to grow our high-quality and diversified investment portfolio. With our significant access to capital and strong market momentum, we intend to strengthen Horizon?s leadership position in the venture lending industry and drive future earnings growth.?
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Tags: financ, Fortress Investment Group, Horizon Technology Finance, venture debt
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