Horizon Technology Finance gets $75 million revolver with Wells Fargo

By Angela McDaniels

Tacoma, Wash., July 18 - Horizon Technology Finance Corp. entered into a $75 million revolving credit facility due July 14, 2017 with Wells Fargo Capital Finance, LLC on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The revolver can be increased to up to $150 million through an accordion feature.

The three-year draw period is followed by a three-year term-out option.

The interest rate is Libor plus 400 basis points with a 1% Libor floor, and the commitment fee is 37.5 bps. The revolver has an advance rate of 50% against eligible loans.

Proceeds will be used for new investments and to leverage existing investments.

In connection with the credit facility, subsidiary Horizon Credit II LLC, as borrower, entered into a loan and security agreement and, as buyer, entered into a sale and servicing agreement under which Horizon Technology Finance will transfer some loans it has originated or acquired, or will originate or acquire, from time to time, to Horizon Credit II.

The company announced on June 20 that it received the commitment for this facility.

Horizon Technology Finance is a Farmington, Conn.-based specialty finance company that provides secured loans to venture capital and private equity-backed development-stage companies in the technology, life science, health-care information and services and clean-tech industries.

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