Horizon Technology Finance Corp (HRZN) 2025 Q3 法說會逐字稿

Ladies and gentlemen, greetings, and welcome to the Horizon Technology Finance Corporation third-quarter earnings conference call. (Operator Instructions)

女士們、先生們，大家好，歡迎參加地平線科技金融公司第三季財報電話會議。（操作說明）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today, Megan Bacon. Please go ahead.

再次提醒，本次會議正在錄影。現在我很榮幸地向大家介紹今天的主持人，梅根·培根。請繼續。

Thank you, and welcome to Horizon Technology Finance Corporation's third-quarter 2025 conference call. Representing the company today are Mike Balkin, Chief Executive Officer; Paul Seitz, Chief Investment Officer; and Dan Trolio, Chief Financial Officer. I would like to point out that the Q3 earnings press release and Form 10-Q are available on the company's website at horizontechfinance.com.

謝謝，歡迎參加 Horizo​​n Technology Finance Corporation 2025 年第三季電話會議。今天代表公司出席的有：執行長 Mike Balkin；首席投資長 Paul Seitz；以及財務長 Dan Trolio。我想指出的是，第三季收益新聞稿和 10-Q 表格可在公司網站 horizo​​​​ntechfinance.com 上查閱。

Before we begin our formal remarks, I need to remind everyone that during this conference call, the company will make certain forward-looking statements, including statements with regard to the future performance of the company. Words such as believes, expects, anticipates, intends, or similar expressions are used to identify forward-looking statements.

在我們正式發言之前，我需要提醒大家，在本次電話會議期間，公司將發表一些前瞻性聲明，包括有關公司未來業績的聲明。諸如“相信”、“預期”、“預計”、“打算”或類似表達方式等詞語用於識別前瞻性陳述。

These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ on a material basis from those projected in these forward-looking statements. And some of these factors are detailed in the risk factor discussion in the company's filings with the Securities and Exchange Commission, including the company's Form 10-K for the year ended December 31, 2024.

這些前瞻性陳述存在預測未來結果和狀況固有的不確定性。某些因素可能導致實際結果與這些前瞻性聲明中預測的結果有重大差異。其中一些因素在公司向美國證券交易委員會提交的文件（包括公司截至 2024 年 12 月 31 日的 10-K 表格）的風險因素討論部分中有詳細說明。

The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. At this time, I would like to turn the call over to Mike Balkin.

本公司不承擔因新資訊、未來事件或其他原因而更新或修改任何前瞻性聲明的義務。此時，我想把電話交給麥克·巴爾金。

Thanks, Megan, and welcome, everyone, and thank you for your interest in Horizon. Today, we will update you on our quarterly performance in the current operating environment. Paul Seitz will take us through recent business and portfolio developments as well as the current status of the venture lending market, and Dan Trolio will detail our operating performance and financial condition. We will then take questions.

謝謝梅根，歡迎各位，也謝謝大家對 Horizo​​​​n 的關注。今天，我們將向大家報告我們在目前經營環境下的季度業績。Paul Seitz 將帶我們了解最近的業務和投資組合發展以及風險貸款市場的現狀，Dan Trolio 將詳細介紹我們的營運績效和財務狀況。接下來我們將回答問題。

Well, it has been a very active several months since I assumed the CEO role in June. I spent countless hours with our team together, thinking about the next chapter of Horizon and how best to expand the Horizon platform moving forward.

自從我六月擔任執行長以來，這幾個月一直非常忙碌。我與團隊一起花了無數個小時，思考 Horizo​​n 的下一個篇章，以及如何更好地擴展 Horizo​​n 平台。

The first part of that strategy came to fruition when we announced in August that MRCC and HRZN will be merging in a NAV for NAV share exchange, subject to shareholder approval and customary closing conditions. The merger is progressing. But due to the federal government shutdown, we now expect to complete it in early 2026.

該策略的第一部分已於 8 月實現，當時我們宣布 MRCC 和 HRZN 將以淨資產值換取股份的方式合併，但需獲得股東批准並滿足慣例成交條件。合併進程正在進行中。但由於聯邦政府停擺，我們現在預計將於 2026 年初完成。

Upon closing, Horizon will significantly increase their assets under management while MRCC shareholders will have the opportunity to participate in what we expect to be a rapidly growing BDC that will be able to take advantage of greater economies of scale in the combined vehicle.

交易完成後，Horizo​​n 的管理資產將大幅增加，而 MRCC 的股東將有機會參與我們預期將快速成長的 BDC，該 BDC 將能夠利用合併後公司更大的規模經濟效益。

Importantly, Monroe Capital, which is the parent company of Horizon Technology Finance Management, will provide additional and ongoing support to the post-merger company. As a result, you will see a much more coordinated and synergistic effort in 2026 as we expect to take significant advantage of having such a premier asset manager and expert private credit lender providing us with stalwart backing.

重要的是，Horizo​​​​n Technology Finance Management 的母公司 Monroe Capital 將為合併後的公司提供額外的持續支援。因此，到 2026 年，您將會看到更協調和協同的努力，因為我們預計將充分利用這樣一家一流的資產管理公司和專業的私人信貸機構為我們提供強有力的支持。

To that end, we added several new originators in the third quarter, who are hitting the ground running. With our reinforced team combined with Monroe support, we expect to compete to originate larger venture loans to top early stage of late-stage cutting-edge companies and return to the growth trajectory that we've historically experienced. I could not be more excited for Horizon's future. And while there is still plenty of work to be done, we have the right team in place to bring the Horizon platform to the next level.

為此，我們在第三季新增了幾位發起人，他​​們正在迅速開展工作。憑藉我們實力增強的團隊以及門羅的支持，我們期望能夠競爭性地為處於早期和後期階段的頂尖尖端公司提供更大規模的風險貸款，並恢復我們過去所經歷的成長軌跡。我對 Horizo​​​​n 的未來感到無比興奮。雖然還有很多工作要做，但我們已經組建了合適的團隊，可以將 Horizo​​n 平台提升到一個新的水平。

Turning to our specific results for the quarter, we generated net investment income of $0.32 per share. As we look to grow our portfolio in future quarters, it remains our goal to deliver NII at or above our declared distributions over time.

就本季的具體業績而言，我們每股淨投資收益為 0.32 美元。展望未來幾個季度，我們將繼續擴大投資組合，但我們的目標仍然是隨著時間的推移，實現淨利息收入達到或超過我們宣布的分配目標。

Thanks in part to our accretive acquisition of venture debt portfolio of a former co-lender as well as achieving favorable outcomes with two of our challenged portfolio companies, our NAV per share grew 5% to $7.12. Based on our outlook and our undistributed spillover income, our Board declared regular monthly distributions of $0.11 per share through March 2026.

部分得益於我們收購了前一家聯合貸款機構的風險債務組合，以及與我們兩家陷入困境的投資組合公司取得了有利的成果，我們的每股淨資產值增長了5%，達到7.12美元。基於我們的展望和未分配的溢出收益，董事會宣布，截至2026年3月，每月將定期派發每股0.11美元的股息。

Once again, we achieved a portfolio yield on debt investments at or near the top of the BDC industry. We also further strengthened our balance sheet in the quarter by accretively raising equity from our at-the-market program and successfully raised $40 million through the issuance of our 5.5% unsecured convertible notes due 2030. And through our more active relationship with Monroe Capital, our pipeline of larger potential venture debt transactions is growing, while we maintain a solid base of additional opportunities to grow our portfolio over time.

我們再次實現了債務投資組合收益率達到或接近 BDC 行業最高水平。本季度，我們也透過市場發行計畫增值籌集了股權，進一步加強了資產負債表，並成功發行了 2030 年到期的 5.5% 無擔保可轉換票據，籌集了 4,000 萬美元。透過與 Monroe Capital 更積極的合作關係，我們潛在的大型風險債務交易項目儲備正在不斷增長，同時我們也保持著穩固的額外機會基礎，以便隨著時間的推移擴大我們的投資組合。

Before handing the call over to Paul, we are very excited for the new Horizon's long-term future and believe we have the right building blocks in place to execute, namely our portfolio yield remains among the industry's highest, which we expect will lead to increased NII over time.

在將電話交給保羅之前，我們對新地平線的長期未來感到非常興奮，並相信我們已經具備了執行的正確基礎，即我們的投資組合收益率仍然是業內最高的之一，我們預計這將隨著時間的推移帶來淨利息收入的增長。

Our liquidity and balance sheet continue to remain strong and will further strengthen post merger. We maintained a strong committed backlog, a robust pipeline, and we believe that the [vacuum] Monroe Capital that we are in a great position to compete for even larger, higher-quality opportunities to invest in new companies. We are already seeing the aperture widening as more private and public companies express interest in our venture lending solutions.

我們的流動性和資產負債表依然強勁，合併後將進一步增強。我們保持了強大的已承諾訂單儲備和穩健的項目儲備，我們相信，在[真空]門羅資本的推動下，我們處於非常有利的地位，可以競爭更大、更高質量的投資新公司的機會。我們已經看到市場空間正在擴大，越來越多的私人和上市公司對我們的風險貸款解決方案表示興趣。

And finally, the demand for venture debt capital remains high. We look forward to being a key supplier of such capital.

最後，對風險債務資本的需求依然很高。我們期待成為此類資金的主要供應方。

Again, we appreciate your continued interest and support in the Horizon technology finance platform. I will now turn the call over to our Chief Investment Officer, Paul Seitz to give you the details of our third quarter results and progress. Paul?

再次感謝您對Horizo​​​​n科技金融平台的持續關注與支持。現在我將把電話交給我們的首席投資官保羅·塞茨，由他來詳細介紹我們第三季度的業績和進展。保羅？

Thanks, Mike, and good morning to everyone. I'm happy to join today's call and look forward to speaking to you all in the quarters to come. It's an exciting time here at Horizon. While we continue to work closely with all of our current portfolio companies to optimize returns and create further opportunities for additional value creation, we are very enthusiastic about our future.

謝謝你，麥克，大家早安。我很高興參加今天的電話會議，並期待在接下來的幾季與大家交流。Horizo​​n現在正處於一個激動人心的時刻。在繼續與我們所有現有投資組合公司密切合作，以優化回報並創造更多價值創造機會的同時，我們對未來充滿信心。

As Mike mentioned, we believe the combined company will provide us with the size and scale needed to originate larger venture loans to growing public and private small companies.

正如麥克所提到的那樣，我們相信合併後的公司將為我們提供所需的規模，以便向不斷發展的上市和私人小公司發放更大規模的風險貸款。

At the end of the quarter, our current portfolio stood at $603 million as the loans we originated and acquired during the quarter were offset by prepayments and amortization in our existing portfolio. In the third quarter, we funded three debt investments totaling $15 million. Positively, we are making strong progress on building up our pipeline with larger venture loan opportunities in our target sectors, and we are positioning ourselves well to return to growing our portfolio.

截至本季末，我們的現有投資組合為 6.03 億美元，因為我們在本季度發放和收購的貸款被現有投資組合中的提前還款和攤銷所抵消。第三季度，我們為三項債務投資提供了資金，總額達 1,500 萬美元。令人欣慰的是，我們在目標行業中透過更大的風險貸款機會來建立我們的專案儲備，並取得了強勁的進展，我們正在為恢復擴大投資組合做好充分準備。

Looking ahead to Q4, we expect to grow our portfolio in the quarter driven by our pipeline. Thus far in October, we have already funded a $10 million venture loan transaction and have been awarded three new venture loan transactions representing $50 million in total commitments, with much of that total to potentially fund in Q4. That said, we will always be disciplined in our approach to originating loans.

展望第四季度，我們預計在產品線的推動下，我們的產品組合將在本季實現成長。截至 10 月，我們已經完成了一筆 1000 萬美元的風險貸款交易，並獲得了三筆新的風險貸款交易，總承諾金額達 5000 萬美元，其中大部分資金預計將在第四季度到位。也就是說，我們在發放貸款方面始終會保持嚴謹的態度。

During the third quarter, we experienced six loan prepayments totaling $50 million in prepaid principal and also collected over $3 million in equity and warrant proceeds. We currently expect more limited prepayment activity in Q4.

第三季度，我們經歷了六筆貸款提前償還，總計提前償還本金 5,000 萬美元，同時也收回了超過 300 萬美元的股權和認股權證收益。我們目前預計第四季度的預付款活動將較為有限。

Our onboarding debt investment yield of 12.2% during the third quarter remained consistent with our historic levels. We expect to continue to generate strong onboarding yields with our current pipeline of opportunities, which we believe will generate strong net investment income over time. Our debt portfolio yield of 18.6% for the quarter was, once again, one of the highest yielding debt portfolios in the BDC industry.

第三季度，我們的新增債務投資報酬率為 12.2%，與歷史水準一致。我們預計，憑藉我們目前的專案儲備，將繼續獲得強勁的新專案收益，我們相信，隨著時間的推移，這些專案將產生強勁的淨投資收益。本季我們的債務組合收益率為 18.6%，再次成為 BDC 產業收益率最高的債務組合之一。

Our ability to generate these industry-leading yields continues to be a testament to our venture lending strategy and our execution of such strategy across various market cycles and interest rate environments. As of September 30, we held more equity positions in 95 portfolio companies with a fair value of $40 million. Structuring investments with warrants and equity rights is a key component of our venture debt strategy and a potential generator of shareholder value.

我們持續獲得業界領先的收益，這證明了我們的風險貸款策略以及我們在各種市場週期和利率環境下執行該策略的有效性。截至 9 月 30 日，我們持有 95 家投資組合公司的股權，公允價值達 4,000 萬美元。運用認股權證和股權進行投資結構化是我們風險債務策略的關鍵組成部分，也是股東價值的潛在創造者。

We ended the third quarter with a committed and approved backlog of $119 million compared to $149 million at the end of the second quarter. We believe our pipeline, combined with our committed backlog, with most of our funding commitments subject to companies achieving certain key milestones, provides a solid base to prudently grow our portfolio over time.

第三季末，我們已承諾且已核准的積壓訂單金額為 1.19 億美元，而第二季末為 1.49 億美元。我們相信，我們的產品線，加上我們已承諾的訂單儲備（其中大部分資金承諾取決於公司是否達到某些關鍵里程碑），為我們隨著時間的推移謹慎地擴大投資組合奠定了堅實的基礎。

As of quarter end, 87% of the fair value of our debt portfolio consisted of 3 and 4 rated debt investments, while 13% of the fair value of our portfolio was rated 2 or 1. While we continue to collaborate with all of our portfolio companies to optimize returns, we are pleased in the quarter to achieve two strong outcomes on stress investments, namely Soli and Hound Labs.

截至季末，我們債務組合公允價值的 87% 由評級為 3 和 4 的債務投資構成，而我們組合公允價值的 13% 由評級為 2 或 1 的債務投資構成。雖然我們繼續與所有投資組合公司合作以優化回報，但我們很高興在本季度在兩項壓力投資中取得了強勁的成果，即 Soli 和 Hound Labs。

These had a positive impact on both NII and NAV. This is a demonstration of our proven ability to utilize a variety of strategies to seek to optimize returns and create opportunities for potential future value.

這些都對 NII 和 NAV 產生了積極影響。這充分證明了我們有能力運用各種策略來優化回報並創造未來潛在價值的機會。

Turning to the venture capital environment, according to PitchBook, the market is warming up with approximately $81 billion invested in VC-backed companies in the third quarter, driven in significant part by continued large investments in AI. On the positive side, we saw exit markets further open in the third quarter with approximately $75 billion of exit value driven primarily by tech IPOs. Along with acquisitions by VC-backed companies, the IPO market is once again opened, and investors clearly are eager to put their money to work.

再來看創投環境，根據 PitchBook 的數據顯示，市場正在升溫，第三季約有 810 億美元投資於創投支持的公司，這在很大程度上是由人工智慧領域持續的大規模投資推動的。從積極的方面來看，我們看到第三季退出市場進一步開放，退出價值約 750 億美元，主要由科技公司 IPO 推動。隨著創投支持的公司進行收購，IPO市場再次開放，投資者顯然渴望讓他們的資金發揮作用。

In Life Sciences, while there is optimism, the remain valuation disconnects and compression, which is keeping a relative lid on potential IPOs in that sector. Meanwhile, on the tech side, there is considerable optimism, and we are being very thoughtful about taking a deeper dive into the various subsectors, particularly in AI and defense technology to determine the best app for future investments.

在生命科學領域，儘管存在樂觀情緒，但估值脫節和壓縮仍然存在，這在一定程度上抑制了該行業的潛在 IPO。同時，在科技領域，人們普遍持樂觀態度，我們正在認真思考如何更深入地研究各個細分領域，特別是人工智慧和國防技術，以確定未來投資的最佳應用。

Looking ahead, venture debt remains a significant option for companies to access capital as they continue to grow and prepare for exits. This provides opportunity for Horizon to seek high-quality, well-sponsored tech and life science companies to add to its portfolio.

展望未來，風險債務仍然是企業在持續發展和準備退出時獲取資金的重要選擇。這為 Horizo​​n 提供了尋找高品質、資金雄厚的科技和生命科學公司並將其納入投資組合的機會。

To sum up, as we close out 2025, we are increasingly excited for our long-term future as we prepare to merge with MRCC. Our alignment with Monroe is increasing, and we are truly beginning to tap into Monroe as an incredible resource, which should significantly benefit us as we target larger venture loan opportunities for both public and private companies. Additionally, we will continue to work diligently on optimizing outcomes with respect to our current portfolio.

總而言之，隨著 2025 年即將結束，我們為與 MRCC 合併做準備，對我們的長遠未來越來越感到興奮。我們與 Monroe 的合作日益緊密，我們真正開始利用 Monroe 作為一項寶貴的資源，這將極大地幫助我們抓住為上市公司和私人公司爭取更大風險貸款機會的機會。此外，我們將繼續努力優化現有投資組合的成果。

We are confident that we are taking the right steps to continue to be a leader in the venture lending space. These steps will enable us to originate larger venture loans to high quality, fast-growing public and private companies, and expand our portfolio over the longer term. This should lead to increased NII over time and ultimately, additional value for shareholders.

我們相信，我們正在採取正確的措施，繼續保持我們在風險貸款領域的領先地位。這些措施將使我們能夠向高品質、快速成長的上市和非上市企業發放更大規模的風險貸款，並在長期內擴大我們的投資組合。隨著時間的推移，這將導致淨利息收入增加，並最終為股東創造更多價值。

With that, I will now turn the call over to our Chief Financial Officer, Dan Trolio.

接下來，我將把電話交給我們的財務長丹‧特羅利奧。

Thanks, Paul, and good morning, everyone. Along with the hard work being accomplished to get the merger across the finish line as well as build up our originations pipeline, we further strengthened our balance sheet during the quarter.

謝謝保羅，大家早安。在努力完成合併以及建立貸款發放管道的同時，我們本季進一步加強了資產負債表。

As Mike mentioned, we successfully raised $40 million through the issuance of our 5.5% convertible notes due 2030 and used the proceeds to retire our Horizon funding trust, asset-backed notes, which had an interest rate of just over 7.5%. Additionally, we continue to utilize our ATM program to successfully and accretively sell over 1.5 million shares in the quarter, raising an additional $10 million of equity.

正如麥克所提到的，我們透過發行 2030 年到期的 5.5% 可轉換債券成功籌集了 4000 萬美元，並將所得款項用於償還我們的 Horizo​​​​n 融資信託的資產支持債券，該債券的利率略高於 7.5%。此外，我們繼續利用我們的 ATM 計劃，在本季度成功且增值地出售了超過 150 萬股股票，籌集了額外的 1000 萬美元股權。

These actions demonstrate our continued ability to opportunistically access the debt and equity markets. In addition, we continue to diligently work with all of our portfolio companies to optimize outcomes for our investments and improve our credit quality. As such, we believe we remain well positioned to grow our portfolio in the coming quarters and create additional value for our shareholders moving forward.

這些舉措顯示我們仍有能力抓住機會進入債務和股權市場。此外，我們將繼續與所有投資組合公司密切合作，以優化投資回報並提高信貸品質。因此，我們相信我們仍處於有利地位，可以在未來幾季擴大我們的投資組合，並為我們的股東創造更多價值。

As of September 30, we had $151 million in available liquidity, consisting of $130 million in cash and $21 million in funds available to be drawn under our existing credit facilities. We currently have no borrowings outstanding under our $150 million KeyBanc credit facility, $181 million outstanding on our $250 million New York Life credit facility, and $90 million outstanding on our $200 million Nuveen credit facility, leaving us with ample capacity to grow our portfolio of debt investments.

截至 9 月 30 日，我們有 1.51 億美元的可用流動資金，其中包括 1.3 億美元的現金和 2,100 萬美元的現有信貸額度下可提取的資金。目前，我們在 KeyBanc 的 1.5 億美元信貸額度下沒有未償還的借款，在 New York Life 的 2.5 億美元信貸額度下有 1.81 億美元未償還的借款，在 Nuveen 的 2 億美元信貸額度下有 9000 萬美元未償還的借款，這使我們有充足的債務組合能力擴大我們的債務組合。

Our net equity ratio stood at 1.36:1 as of September 30. And netting out cash on our balance sheet, our net leverage was 0.94:1 below our target leverage. Based on our cash position and our borrowing capacity on our credit facilities, our potential new investment capacity as of September 30 was $460 million.

截至9月30日，我們的淨資產比率為1.36:1。扣除資產負債表上的現金後，我們的淨槓桿比率比目標槓桿率低 0.94:1。根據我們的現金狀況和信貸額度，截至 9 月 30 日，我們的潛在新增投資能力為 4.6 億美元。

Turning to our operating results. For the third quarter, we earned investment income of $26 million compared to $25 million in the prior-year period, primarily due to higher interest income and fee income on our debt investment portfolio. Our net investment portfolio on a net cost basis stood at $585 million as of September 30 compared to $636 million as of June 30, 2025.

接下來來看看我們的經營業績。第三季度，我們的投資收益為 2,600 萬美元，而去年同期為 2,500 萬美元，這主要是由於我們的債務投資組合的利息收入和手續費收入增加。截至 2025 年 9 月 30 日，我們的淨投資組合以淨成本計算為 5.85 億美元，截至 2025 年 6 月 30 日為 6.36 億美元。

For the third quarter of 2025, we achieved onboarding yields of 12.2% compared to 12% achieved in the second quarter of 2025. Our loan portfolio yield was 18.6% for the third quarter compared to 15.9% for last year's third quarter.

2025 年第三季度，我們的新用戶註冊收益率為 12.2%，而 2025 年第二季為 12%。第三季我們的貸款組合收益率為 18.6%，去年同期為 15.9%。

Total expenses for the quarter were $12 million, compared to $12.4 million in the third quarter of '24. Our interest expense of $7.9 million was comparable to last year's third quarter, while our base management fee was $2.7 million, $0.2 million lower than our prior-year period due to a smaller portfolio.

本季總支出為 1,200 萬美元，而 2024 年第三季為 1,240 萬美元。我們的利息支出為 790 萬美元，與去年第三季基本持平；而我們的基本管理費為 270 萬美元，由於投資組合規模較小，比上年同期減少了 20 萬美元。

We received no performance-based incentive fees in the third quarter as we continue to experience the deferral of incentive fees otherwise earned by our adviser under our incentive fee cap and deferral mechanism. While we expect that the adviser will return to earning incentive fees, as we previously mentioned, the adviser has agreed to waive a portion of any incentive fee in a quarter where we do not earn our distributions in 2025.

由於我們的激勵費用上限和遞延機制繼續導致顧問原本應獲得的激勵費用被遞延，因此我們在第三季度沒有收到任何基於業績的激勵費用。雖然我們預計顧問將恢復賺取激勵費用，但正如我們之前提到的，顧問已同意放棄在 2025 年我們沒有獲得分配的季度中的一部分激勵費用。

Net investment income for the third quarter of '25 was $0.32 per share compared to $0.28 per share in the second quarter of '25 and $0.32 per share for the third quarter of 24%. The company's undistributed spillover income as of September 30 was $0.93 per share. Based upon our outlook and undistributed spillover income, our Board declared monthly distributions of $0.11 per share for January, February, and March 2026.

2025 年第三季的淨投資收益為每股 0.32 美元，而 2025 年第二季為每股 0.28 美元，2024 年第三季為每股 0.32 美元。截至9月30日，該公司未分配的溢出收益為每股0.93美元。根據我們的展望和未分配的溢出收入，董事會宣布 2026 年 1 月、2 月和 3 月每月每股派息 0.11 美元。

To summarize our portfolio activities for the quarter, new originations totaled $15 million, and we also purchased for $23 million additional investments via the acquisition of the venture debt portfolio of a former co-lender. These were offset by $14 million in scheduled principal payments and $61 million in principal prepayments and partial paydowns.

總結本季我們的投資組合活動，新增貸款總額為 1,500 萬美元，此外，我們也透過收購前一家聯合貸款機構的風險債務組合，額外購買了 2,300 萬美元的投資。這些損失被 1,400 萬美元的計劃本金支付和 6,100 萬美元的本金提前償還和部分償還所抵消。

We ended the quarter with a total investment portfolio of $603 million. As of September 30, the portfolio consisted of debt investments and 39 companies with an aggregate fair value of $560 million in a portfolio of warrant, equity and other investments in 102 companies with an aggregate fair value of $43 million.

本季末，我們的投資組合總額為 6.03 億美元。截至 9 月 30 日，該投資組合包括 39 家公司的債務投資，總公允價值為 5.6 億美元；該投資組合還包括 102 家公司的認股權證、股權和其他投資，總公允價值為 4,300 萬美元。

Our NAV as of September 30 was $7.12 per share compared to $6.75 as of June 30, 2025, and $9.06 as of September 30, 2024. The $0.37 increase in NAV on a quarterly basis was primarily due to net investment income and positive adjustments to fair value, partially offset by our paid distributions.

截至 9 月 30 日，我們的每股淨資產為 7.12 美元，而截至 2025 年 6 月 30 日為 6.75 美元，截至 2024 年 9 月 30 日為 9.06 美元。季度淨值增加 0.37 美元，主要原因是淨投資收益和公允價值的積極調整，部分被我們支付的分紅所抵消。

As we've consistently noted, nearly 100% of our outstanding principal amount of our debt investments bear interest at floating rates. Of those investments, almost 60% are already at their interest rate floors, which should mitigate the impact of decreasing interest rates.

正如我們一直指出的那樣，我們未償還債務投資本金的近 100% 都以浮動利率計息。在這些投資中，近 60% 的投資利率已經觸底，這應該會減輕利率下降的影響。

This concludes our opening remarks. We'll be happy to take questions you may have at this time.

我們的開場白到此結束。我們很樂意回答您此時可能提出的問題。

(Operator Instructions) Douglas Harter, UBS.

（操作說明）道格拉斯‧哈特，瑞銀集團。

Hi. This is Cory Johnson on for Doug Harter. So it sounds like the VC market is heating up and there are more exits out there in the market. And our early payoffs have been strong for the last two quarters, but I believe you mentioned that for 4Q, that those payoffs might be a little bit more limited.

你好。這裡是科里·約翰遜，代道格·哈特為您報道。聽起來創投市場正在升溫，市場上會有更多退出機會。過去兩個季度，我們的早期回報非常強勁，但我相信您提到過，第四季度的回報可能會稍微有限一些。

I guess, what do you expect that trend to be going forward maybe into 2026? And is it related to the government shutdown where we think that perhaps the 4Q payouts might be a little bit more limited?

我想，您認為這種趨勢在未來幾年，例如 2026 年會如何發展？這是否與政府停擺有關？我們認為第四季的分紅可能會受到一些限制。

Yeah, this is Paul Seitz. I don't think that the government shutdown necessarily is going to impact any payoffs or prepayments or anything like that. I would say that it was a little bit higher this quarter, but we expect probably our payoffs and early prepayments to revert to any sort of historical standard. The exit markets are heating up, which is a good thing. But I think right now, we're just sort of a little bit of a wait-and-see period.

是的，這位是保羅·塞茨。我不認為政府停擺一定會對任何還款、預付款或其他類似事項產生影響。我認為本季略高一些，但我們預計我們的還款和提前還款可能會恢復到歷史正常水平。退出市場正在升溫，這是一件好事。但我認為目前我們正處於一個觀望階段。

Got it. And during the quarter, the net leverage -- your net leverage came down. Curious, are you seeing -- I know you mentioned that you think your portfolio will grow next quarter and you're starting to see more deals come across your table.

知道了。本季淨槓桿率下降了。我很好奇，您是否看到——我知道您提到您認為您的投資組合將在下個季度增長，而且您也開始看到更多交易擺在您面前。

But I was just sort of curious in terms of like now that you are seeing more deals, what is sort of the credit quality behind them? Are there names that you like? Or are you just more name that you seem to be -- you're looking to pass on?

但我很好奇，既然現在交易越來越多，那麼這些交易背後的信用品質如何呢？有沒有你喜歡的名字？還是你只是個幌子——你想把名字傳承下去？

And then obviously, it's a little bit difficult to exactly figure out the trajectory of your -- where the leverage will go. But how long do you think it might be before you perhaps reach your target leverage again?

顯然，要準確預測你的槓桿作用會走向何方，是有點困難的。但你認為大概多久後才能再次達到你的目標槓桿率？

Yeah. So as we say every quarter, our target leverage is around 1.2 to 1.3 times net of cash. This quarter, it did come down a bit, where we're at 0.94:1. So as we talked where -- in our prepared remarks that the pipeline is growing in originations, we expect originations to exceed prepayments going forward. And so I think when we look at the leverage, we should be getting back to that 1.2, 1.3 times over the next quarter or two.

是的。正如我們每季所說，我們的目標槓桿率（扣除現金後）約為 1.2 至 1.3 倍。本季度，這一比例確實有所下降，目前為 0.94:1。正如我們在準備好的發言稿中所說，貸款發放量正在成長，我們預計未來貸款發放量將超過預付款。所以我認為，從槓桿率來看，我們應該會在接下來的季度或兩個季度內恢復到 1.2 倍、1.3 倍的水平。

(Operator Instructions) Paul Johnson, KBW.

（操作說明）Paul Johnson，KBW。

Just on the portfolio yield or just the portfolio yield in general, it sounds like you're pretty confident about the onboarding yields coming in. But obviously, the income has been running higher, some onetime items just running higher with prepayments. I mean, the 18.9% yield, I mean, how should we be thinking about that? Is that sustainable going forward? Or what's kind of like the longer-term sort of target, I guess, based on the same pipeline?

僅就投資組合收益率或整體投資組合收益率而言，聽起來您對即將到來的新客戶收益率相當有信心。但很顯然，收入一直在增加，一些一次性支出項目，包括預付款，也增加了支出。我的意思是，18.9% 的收益率，我們該如何看待這個收益率？這種做法未來是否可持續？或者說，基於同一發展路徑的長期目標是什麼？

Yeah. So I would point you to our historical portfolio yield, which we've averaged around 14.5% to 15%. That's a more normalized yield. And then I'll just point out, that is a portfolio yield after prepayments and one-time events. And as we mentioned, the onboarding yield has been about 12%, 12.5% for the past few quarters and probably most likely be around that going forward.

是的。因此，我想向您推薦我們歷史投資組合收益率，平均約為 14.5% 至 15%。這是一個更正常的產量。然後我還要指出，這是扣除提前還款和一次性事件後的投資組合收益率。正如我們之前提到的，過去幾季的新用戶註冊率約為 12% 至 12.5%，而且未來很可能也會維持在這個水準左右。

Got it. Okay. Thank you. That's helpful. And then maybe you could just take us through the debt portfolio that you acquired during the quarter, kind of what transpired there? It looks like you were able to buy at a potentially a discount to where, I guess, had previously been marked. But anything -- any color on that would be helpful to hear.

知道了。好的。謝謝。那很有幫助。然後，您能否帶我們了解一下您在本季收購的債務組合，以及其中發生了什麼？看起來你買到的東西可能比之前的價格便宜。但任何資訊——任何相關細節——都會對我們有所幫助。

Yeah, correct. We were able to acquire a venture debt portfolio from one of our co-lenders that we had created a [sidecar] fund SMA back in 2021 with a $300 million total commitment. We were able to invest that completely. And so it was in runoff.

是的，沒錯。我們得以從我們的一位聯合貸款人那裡收購風險債務組合，我們在 2021 年創建了一個 [邊車] 基金 SMA，總承諾額為 3 億美元。我們能夠將這筆錢全部投入進去。徑流中也是如此。

And then over the past year or so, when there are fewer names remaining, we were working with that co-lender, names that, obviously, we've already invested in and negotiated a price. They were -- a co-lender and venture debt was their only venture debt portfolio, and they were looking just to exit the market. And obviously, we're the natural buyer.

然後在過去一年左右的時間裡，當剩下的公司越來越少時，我們與那些共同貸款人合作，這些公司顯然是我們已經投資並協商好價格的公司。他們是——一家聯合貸款機構，風險債務是他們唯一的風險債務投資組合，他們只是想退出市場。顯然，我們是天然的買家。

Got it. Okay. Interesting. And then maybe just it would be helpful to hear kind of what is -- as we get into next year and get beyond the fee waivers, like what is kind of the idea with spillover? It still looks like there's a decent amount of $0.93. But I mean, would you like to just continue to work that down potentially further before evaluating the distribution? Or is that something you'd like to kind of maintain?

知道了。好的。有趣的。那麼，或許了解一下──隨著我們進入明年，費用豁免政策結束，溢出效應的理念是什麼──會很有幫助？看起來還有不少 0.93 美元。但我的意思是，在評估分配情況之前，你是否想繼續進一步削減這個數字？或者，這是你想維持的某種狀態嗎？

Yeah. So I'll just remind you, every quarter, we discussed the distribution and take into account the current income level and the future level of the Horizon platform and look at the spillover, and we'll determine the amount of distribution on a quarterly basis.

是的。所以我要提醒各位，每個季度，我們都會討論分配方案，並考慮當前收入水平和 Horizo​​n 平台的未來水平，以及溢出效應，然後確定每個季度的分配金額。

Christopher Nolan, Ladenburg Thalmann.

克里斯多福諾蘭，拉登堡塔爾曼。

Assuming the deal with MRCC closes, is the focus going to be on larger credits going forward? And what does that do to the yield?

假設與 MRCC 的交易完成，未來的重點是否會放在規模更大的信貸項目上？那會對產量產生什麼影響？

That will be one of the benefits with a larger balance sheet. You can hold larger position and stay diversified as we focus on our top 1, top 5, top 10 diversification. But there will still be venture debt deals in the market that we have played in. We'll just be able to hold larger pieces of it. And so we don't expect the yields to change dramatically.

這將是資產負債表規模擴大帶來的好處之一。您可以持有更大的部位並保持多元化，因為我們專注於前 1、前 5、前 10 名的多元化投資。但我們參與過的風險債務交易市場仍然會存在。我們只能保存更大塊的物品了。因此，我們預期收益率不會發生劇烈變化。

Great. Given the stock price is trading below book now, what's the plan on using the common stock ATM going forward?

偉大的。鑑於目前的股價低於帳面價值，未來使用普通股ATM機的計畫是什麼？

Same plan as usual. We look at our originations pipeline. We look at our liquidity and our capacity and look to pull as many levers as possible to originate and grow the portfolio where we can. Obviously, we're trading below book. We won't be able to utilize the ATM.

計劃照舊。我們檢視一下我們的專案啟動流程。我們會審視自身的流動性和能力，並盡可能利用各種手段來拓展和擴大投資組合。顯然，我們的交易價格低於帳面價值。我們將無法使用自動櫃員機。

Okay. And then given -- assuming the Monroe deal closes, you have a much larger balance sheet. Any consideration in terms of revisiting the base management fee? I know it is 2% for the first $250 million in assets. And then there's a breakpoint to 160 bps above $250 million. And even at 160 bps, you're sort of at the high end of the range for BDCs in general stay. Any comment on that?

好的。而且，假設門羅交易完成，你的資產負債表規模將會大得多。是否有考慮重新調整基本管理費？我知道前 2.5 億美元資產的稅率是 2%。然後，還有一個高於 2.5 億美元 160 個基點的斷點。即使利率達到 160 個基點，對於一般的 BDC 來說，這也算是利率範圍的高端了。對此有何評論？

Yeah. So we have our normal 15-C process that we do on an annual basis, and we review all of our competitors. And when everybody calculates it different, has different hurdles and different percentages on a blended effective cost percentage; we are within the average of our peers. We look at it every year through that 15-C process, and we'll continue to do that going forward and make sure we're within market.

是的。所以我們每年都會進行常規的 15-C 流程，我們會審查所有競爭對手。當每個人的計算方法都不同，面臨的障礙也不同，綜合有效成本百分比的百分比也不同時，我們的結果與同業相比處於平均水準。我們每年都會透過 15-C 流程來審視這個問題，我們將繼續這樣做，以確保我們的產品符合市場標準。

Great. And then any target ROE for the new assets coming on from Monroe?

偉大的。那麼，對於從門羅公司收購的新資產，是否有任何目標淨資產收益率（ROE）？

We don't have any targeted new assets right now that are coming on. The Monroe platform will help us get access to larger assets and potentially some additional assets, but nothing specific today.

我們目前沒有任何即將推出的特定新資產。Monroe 平台將幫助我們獲得更大的資產，並有可能獲得一些額外的資產，但目前還沒有具體細節。

Yeah. No, actually, I phrased it poorly. For the new capital coming in from the Monroe deal, what is the target ROE or return hurdle that you're looking for to get from that new capital?

是的。不，其實是我表達得不好。對於從 Monroe 交易中獲得的新資金，您希望從這筆新資金中獲得的目標 ROE 或回報門檻是多少？

It's basically stick to what we do, the venture debt model that has a high-yielding portfolio, and that will drive the ROE. We don't have a specific targeted ROE on that capital.

基本上，我們堅持我們目前的做法，即採用高收益投資組合的風險債務模式，這將推動淨資產收益率 (ROE) 的提升。我們沒有為這部分資本設定具體的目標淨值收益率。

Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mike Balkin for the closing comments.

謝謝。女士們、先生們，既然沒有其他問題了，我現在將會議交給麥克‧巴爾金做總結發言。

Thank you all for joining us this morning. We appreciate your continued interest and support in Horizon, and we look forward to speaking with you again soon. This will conclude our call.

感謝各位今天上午的參與。我們感謝您一直以來對 Horizo​​​​n 的關注和支持，並期待盡快與您再次洽談。通話到此結束。

Thank you. Ladies and gentlemen, the conference of Horizon Technology Finance Corporation has now concluded. Thank you for your participation. You may now disconnect your lines.

謝謝。女士們、先生們，地平線科技金融公司的會議到此結束。感謝您的參與。現在您可以斷開線路了。