Horizon Technology Finance Closes Merger with Monroe Capital

Horizon Technology Finance Corporation has closed its previously announced merger with Monroe Capital Corporation, with Horizon as the surviving company. The combined company is expected to have approximately $471.7 million of net assets on a pro forma basis immediately after closing, including approximately $141.1 million in cash received in connection with the merger.

Horizon will remain externally managed by Horizon Technology Finance Management LLC. As part of the deal, Horizon will issue 20,370,693 shares of its common stock in aggregate, representing 0.9402 shares of Horizon stock for each Monroe share, with cash paid in lieu of fractional shares. Immediately after closing, former Monroe stockholders are expected to own 29.86% and legacy Horizon stockholders 70.14% of the combined company.

The company also plans to use a portion of undistributed taxable earnings of $27.6 million as of December 31, 2025 to supplement monthly distributions for the next two fiscal quarters following closing, subject to board declaration.