Monroe Capital Corp (MRCC) 2025 Q2 法說會逐字稿

Greetings, and welcome to the Horizon Technology Finance Corporation second-quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Horizo​​n Technology Finance Corporation 2025 年第二季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce Megan Bacon, Director of Investor Relations and Marketing. Please go ahead.

現在我很高興介紹投資者關係和行銷總監梅根·培根 (Megan Bacon)。請繼續。

Thank you, and welcome to our call announcing the merger of Horizon Technology Finance Corporation and Monroe Capital Corporation as well as Horizon's second quarter 2025 conference call. In addition to the press release related to the transactions issued earlier today, each of Monroe Capital Corporation and Horizon Technology Finance Corporation have posted a joint investor presentation on monroebdc.com and horizontechfinance.com, respectively.

謝謝，歡迎參加我們的電話會議，宣布 Horizo​​n Technology Finance Corporation 和 Monroe Capital Corporation 的合併以及 Horizo​​​​n 2025 年第二季度電話會議。除了今天稍早發布的與交易相關的新聞稿外，Monroe Capital Corporation 和 Horizo​​n Technology Finance Corporation 分別在 monroebdc.com 和 horizo​​​​ntechfinance.com 上發布了聯合投資者介紹。

We will be referencing this presentation during the call. I would also like to point out that Horizon's Q2 earnings press release and Form 10-Q are available on Horizon's website at horizontechfinance.com. Please note that this call will contain forward-looking statements, which are subject to risks and uncertainties.

我們將在通話過程中參考該簡報。我還想指出，Horizo​​​​n 第二季度盈利新聞稿和 10-Q 表可在 Horizo​​​​n 網站 Horizo​​ntechfinance.com 上查閱。請注意，本次電話會議將包含前瞻性陳述，這些陳述受風險和不確定性的影響。

All statements other than historical facts, including statements related to the expected closing of the transaction, the ability of the parties to complete the proposed transactions based on the various closing conditions and certain aspects of the proposed transactions, such as Monroe Capital Corporation selling its existing investment portfolio for cash and immediately thereafter completing the merger between Monroe Capital Corporation and Horizon Technology Finance Corporation, are forward-looking statements.

除歷史事實之外的所有陳述，包括與交易預期完成、各方根據各種成交條件完成擬議交易的能力以及擬議交易的某些方面有關的陳述，例如 Monroe Capital Corporation 以現金出售其現有投資組合併隨後立即完成 Monroe Capital Corporation 和 Horizo​​​​n Technology Finance Corporation 之間的合併，均為前瞻性陳述。

These statements are subject to risks and our actual future results may differ materially from those expressed on this call. Monroe Capital Corporation, Horizon Technology Finance Corporation and their respective affiliates assume no obligation to update any forward-looking statements. Please see slide 2 of the joint investor presentation for more information.

這些聲明具有風險，我們未來的實際結果可能與本次電話會議中表達的結果有重大差異。Monroe Capital Corporation、Horizo​​n Technology Finance Corporation 及其各自的附屬公司不承擔更新任何前瞻性聲明的義務。請參閱聯合投資者簡報的第 2 張投影片以了解更多資訊。

At this time, I would like to turn the call over to Ted Koenig.

現在，我想將電話轉給泰德·科尼格 (Ted Koenig)。

Good afternoon, and welcome, everyone. Thank you for joining today's call. I am Ted Koenig, Chairman and CEO of Monroe Capital Corporation, and I'm pleased to be joined by Michael Balkin, CEO of Horizon Technology Finance Corporation. We are also joined by Mick Solimene, Chief Financial Officer and Chief Investment Officer of Monroe Capital Corporation; and Dan Trolio, Chief Financial Officer of Horizon Technology Finance Corporation.

下午好，歡迎大家。感謝您參加今天的電話會議。我是門羅資本公司 (Monroe Capital Corporation) 董事長兼首席執行官泰德·科尼格 (Ted Koenig)，很高興與地平線技術金融公司 (Horizo​​​​n Technology Finance Corporation) 首席執行官邁克爾·巴爾金 (Michael Balkin) 一起出席。與我們一同出席的還有 Monroe Capital Corporation 的財務長兼首席投資長 Mick Solimene；以及 Horizo​​n Technology Finance Corporation 的財務長 Dan Trolio。

Today marks a significant milestone for Monroe's BDC platform, which is currently comprised of Monroe Capital Corporation or MRCC, Horizon Technology Finance Corporation or Horizon, and Monroe Capital Income Plus Corporation or MCIP.

今天是門羅 BDC 平台的一個重要里程碑，目前由門羅資本公司（MRCC）、地平線技術金融公司（Horizo​​n）和門羅資本收入加公司（MCIP）組成。

We are excited to announce a strategic transaction that will culminate in the merger of Monroe Capital Corporation and Horizon Technology Finance Corporation, our two publicly traded BDCs. We believe that this is a unique opportunity to unlock shareholder value in MRCC, establish Horizon as a leading, well-capitalized venture debt and growth capital provider to small cap companies, and to optimize our platform's direct lending capabilities in a market that increasingly rewards BDCs with both reach and specialization.

我們很高興地宣布一項策略性交易，最終將導致我們的兩家公開交易的 BDC Monroe Capital Corporation 和 Horizo​​n Technology Finance Corporation 合併。我們相信，這是一個獨特的機會，可以釋放 MRCC 的股東價值，將 Horizo​​​​n 打造為一家領先的、資本雄厚的風險債務和小型公司增長資本提供商，並在一個越來越重視 BDC 覆蓋範圍和專業化的市場中優化我們平台的直接借貸能力。

We will walk you through the key details of the proposed transaction and what it means for both MRCC and Horizon shareholders, and share insights into the key value-creation drivers that we believe will result from the combination of these companies has the potential to generate, highlighted by enhanced scale, operating efficiencies, cost savings and accelerated growth.

我們將向您介紹擬議交易的關鍵細節及其對 MRCC 和 Horizo​​n 股東的意義，並分享我們認為這些公司合併可能產生的關鍵價值創造驅動因素的見解，重點是擴大規模、提高營運效率、節約成本和加速成長。

Importantly, we believe we've carefully constructed and structured this transaction to be accretive to all parties and preserve net asset value, or NAV integrity while creating compelling long-term upside for our shareholders. As a leading venture debt platform, the proposed merger will provide the combined Horizon company with an estimated $165 million of incremental equity capital based on MRCC's June 30, 2025 preliminary NAV range estimate, net of estimated transaction expenses and related NAV adjustments, as well as the distribution of all undistributed net investment income.

重要的是，我們相信我們已經精心構建和設計了這筆交易，以便為所有各方帶來增值，並保持淨資產價值或資產淨值完整性，同時為我們的股東創造引人注目的長期上漲空間。作為領先的風險債務平台，擬議的合併將為合併後的 Horizo​​​​n 公司提供約 1.65 億美元的增量股本，該增量股本基於 MRCC 2025 年 6 月 30 日的初步資產淨值範圍估計，扣除估計交易費用和相關資產淨值調整，以及所有未分配淨投資收益的分配。

We believe this additional equity capital will provide the scale, resources and flexibility to execute Horizon's next phase of growth while capturing operational efficiencies. This strengthened platform is expected to deliver accretive, net investment income as compared to the standalone forecast, and create meaningful long-term value for shareholders.

我們相信，這些額外的股本將為 Horizo​​n 實現下一階段的成長提供規模、資源和靈活性，同時提高營運效率。與獨立預測相比，這個加強平台預計將帶來增值的淨投資收益，並為股東創造有意義的長期價值。

Turning to slide 4. This is a tri-party transaction that will be executed in two concurrent steps, which have received unanimous approval from the applicable Boards of Directors of MRCC, MCIP and Horizon, including each of their respective special committees of independent directors.

翻到幻燈片 4。這是一項三方交易，將分兩個步驟同時進行，並已獲得 MRCC、MCIP 和 Horizo​​n 董事會（包括各自的獨立董事特別委員會）的一致批准。

First, MRCC will sell substantially all of its assets at fair value to MCIP on a privately offered BDC. Based on the closing price of MRCC's share price on August 5, 2025, the sale represents an estimated 33% premium to the share price, unlocking shareholder value for all stakeholders in MRCC.

首先，MRCC 將透過私募 BDC 以公允價值向 MCIP 出售其絕大部分資產。根據 MRCC 股價 2025 年 8 月 5 日的收盤價，此次出售預計比股價溢價 33%，為 MRCC 所有利害關係人釋放股東價值。

The final NAV used to determine the sale price of the assets will be established shortly before the transaction closes. MRCC will use those cash proceeds net of transaction expenses to repay liabilities and declare and pay a distribution to its shareholders equal to any remaining undistributed net investment income.

用於確定資產出售價格的最終資產淨值將在交易結束前不久確定。MRCC 將使用扣除交易費用後的現金收益償還債務，並向股東宣布和支付相當於任何剩餘未分配淨投資收益的分配。

This sale will result in MRCC holding only cash, ensuring that the shareholders immediately realize significant value. MCIP is acquiring a highly familiar portfolio of high-quality assets that will enable continued growth and be accretive to its shareholder returns. Nearly 80% of the assets acquired by MCIP from MRCC are already owned and in the existing loan portfolio of MCIP.

此次出售將導致 MRCC 僅持有現金，確保股東立即實現重大價值。MCIP 正在收購一個非常熟悉的高品質資產組合，這將實現持續成長並增加股東回報。MCIP 從 MRCC 收購的資產中，近 80% 已為 MCIP 所擁有，並已納入其現有的貸款組合中。

In the second transaction, the all-cash MRCC entity will 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.

在第二筆交易中，全現金 MRCC 實體將根據截止日期前不久確定的每個實體的淨資產價值，透過 NAV-to-NAV 股票交換與 Horizo​​​​n 合併。我們相信此次合併將為雙方股東帶來真正的雙贏。MRCC 股東將獲得 Horizo​​​​n 的普通股，而 Horizo​​n 將獲得相應的約 1.65 億美元現金注入以換取這些股份。

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 adviser, and trade on the NASDAQ under its ticker symbol HRZN. 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 the necessary regulatory approvals and applicable approvals of both the MRCC and Horizon shareholders.

Horizo​​n Technology Finance Management（HTFM，一家隸屬於門羅的投資顧問公司）管理，並在納斯達克以股票代碼 HRZN 進行交易。值得注意的是，我們預計該交易將於 2025 年 12 月完成，但前提是資產出售和合併同時完成，並且獲得必要的監管批准以及 MRCC 和 Horizo​​n 股東的適用批准。

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 adviser and the investment adviser of the combined HRZN 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.

投影片 5 總結了交易的關鍵要素，重點在於股東的一致性和保護。與交易相關並為了支持交易，合併後的 HRZN 公司的外部顧問和投資顧問 HTFM 已同意在交易結束後的前四個完整財政季度內免除總計高達 400 萬美元的諮詢費，每季度高達 100 萬美元。

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 aggregate of up to 2% of the then outstanding shares at then current market prices at any time the Horizon stock is trading below 90% of the the most recently disclosed NAV per share.

這些諮詢費減免旨在支持核心淨投資收入，而 Horizo​​n 則專注於選擇性地、有效地部署增量資本來執行其策略性成長計畫。費用減免不會超過相應季度所賺取的費用總額。此外，Horizo​​​​n 現有的股票回購計劃在交易結束後仍可用於公開市場回購其普通股，當 Horizo​​​​n 股票交易價格低於最新披露的每股資產淨值的 90% 時，總計最多可回購當時流通股數的 2%（以當時的市場價格計算）。

Prior to the closing of the merger, both MRCC and Horizon intend to declare and pay ordinary course distributions subject to their respective boards' approval. In addition, MRCC intends to declare a distribution to its shareholders equal to any undistributed income estimated to be remaining as of the closing of the merger, subject to its Board approval.

在合併完成之前，MRCC 和 Horizo​​n 均打算宣布並支付正常分配，但須經各自董事會批准。此外，MRCC 還打算向其股東分配相當於合併結束時預計剩餘的任何未分配收入，但須經董事會批准。

Finally, Horizon and MRCC have agreed to a balanced Board structure post-close, with the combined Board expected to be comprised of two current independent Horizon directors, one current MRCC independent director; and Mike Balkin, the CEO of the combined company. We believe this transaction unlocks immediate tangible value to MRCC shareholders while offering tax efficiency and a compelling long-term upside.

最後，Horizo​​​​n 和 MRCC 同意在交易完成後建立平衡的董事會結構，合併後的董事會預計將由兩名現任 Horizo​​​​n 獨立董事、一名現任 MRCC 獨立董事以及合併後公司的首席執行官 Mike Balkin 組成。我們相信，此次交易將為 MRCC 股東帶來直接的有形價值，同時提供稅收效率和引人注目的長期上漲空間。

By selling the MRCC investment portfolio to MCIP at fair value, MRCC shareholders are expected to realize approximately a 33% premium to the market trading price as of August 5, 2025 based on MRCC's estimated preliminary June 30, 2025 NAV.

透過以公允價值向 MCIP 出售 MRCC 投資組合，MRCC 股東預計將根據 MRCC 估計的 2025 年 6 月 30 日初步資產淨值，實現截至 2025 年 8 月 5 日的市場交易價格溢價約 33%。

As the merger is structured as a tax-free reorganization, this enables MRCC shareholders to defer taxes and maintain their investments in a larger, more scalable platform that will benefit from a significant capital infusion to propel its next phase of growth. The larger combined platform presents MRCC shareholders with a greater potential to realize upside through enhanced scale and liquidity, stronger earnings power bolstered by synergies and other operational savings, and accelerated growth.

由於合併採用免稅重組的結構，這使得 MRCC 股東能夠推遲納稅，並將其投資維持在更大、更具可擴展性的平台上，該平台將受益於大量資本注入，以推動其下一階段的成長。更大的合併平台為 MRCC 股東提供了更大的潛力，透過增強規模和流動性、透過協同效應和其他營運節省以及​​加速成長來實現更強的獲利能力來實現上行。

With that, I will now turn the call over to Mike Balkin, Horizon's Chief Executive Officer, who will provide color around the benefits to Horizon's existing shareholders as well as to elaborate on the next phase of Horizon's growth strategy.

現在，我將把電話轉給 Horizo​​n 執行長 Mike Balkin，他將詳細介紹 Horizo​​n 現有股東的利益，並闡述 Horizo​​​​n 成長策略的下一階段。

Thank you, Ted. First, let me say how excited I am to be onboard here at Horizon and to lead the company into the next phase of its growth. Second, I want to express my firm belief to Horizon shareholders that this strategic rationale and benefits of this merger are very clear. Horizon will receive an immediate boost in size and scale as it will add approximately $165 million in equity to its capital base based on June 30, 2025 numbers, bringing the combined company's estimated NAV to approximately $446 million.

謝謝你，泰德。首先，我要說的是，我很高興加入 Horizo​​​​n，並帶領公司進入下一個發展階段。其次，我想向 Horizo​​​​n 股東表達我的堅定信念，即此次合併的策略原理和好處非常明確。Horizo​​n 的規模將立即得到提升，因為它將根據 2025 年 6 月 30 日的數據在其資本基礎上增加約 1.65 億美元的股權，使合併後公司的預計資產淨值達到約 4.46 億美元。

In addition, Horizon will be able to leverage this capital infusion with debt to provide more investment capital, which may produce more core NII growth. This increased scale is expected to help reduce Horizon's per share operating expenses, to provide access to lower cost financing and to further solidify the firm as a leading venture debt and growth capital provider.

此外，Horizo​​n 將能夠利用債務注入的資本來提供更多的投資資本，這可能會產生更多的核心 NII 成長。預計規模擴大將有助於降低 Horizo​​n 的每股營運費用、提供更低成本的融資管道並進一步鞏固公司作為領先的風險債務和成長資本提供者的地位。

With a larger market capitalization and bigger public float, we believe trading liquidity in Horizon will be enhanced. We believe all of these traits are increasingly rewarded by investors in the public BDC space. Next, the merger is expected to be accretive to core net investment income over time driven by G&A savings, portfolio optimization and potential access to lower-cost financing. As mentioned earlier, HTFM has agreed to supplement net investment income through meaningful fee waivers during the first year following the closing of the transaction.

隨著市值和公眾持股量的增加，我們相信 Horizo​​n 的交易流動性將會增強。我們相信，所有這些特質都會越來越受到公共 BDC 領域投資者的青睞。其次，在一般及行政費用節省、投資組合優化和潛在的低成本融資機會的推動下，此次合併預計將隨著時間的推移增加核心淨投資收入。如前所述，HTFM 同意在交易結束後的第一年透過有意義的費用減免來補充投資淨收入。

And notably, the fresh capital from the merger provides Horizon with the fuel and the runway to execute its next phase of growth while allowing HTFM to scale its venture debt platform through more investments in its origination capabilities as well as enhancing its investment mandate.

值得注意的是，合併帶來的新資本為 Horizo​​n 提供了實現下一階段成長的動力和平台，同時允許 HTFM 透過對其發起能力進行更多投資以及增強其投資授權來擴大其風險債務平台。

Turning to slide 8. While we will continue to provide venture debt to sponsor-backed private companies in technology, health care, life sciences and sustainability industries, we also expect to leverage our existing platform to more actively provide loans to public small-cap companies. To supplement my 35-plus years of working with small cap public companies, we've strengthened our existing leadership team with the addition of Paul Seitz as our Chief Investment Officer. Paul is a seasoned lending professional who has extensive experience in the venture debt market as well as helping lead Monroe's software and technology lending vertical.

翻到幻燈片 8。我們將繼續向科技、醫療保健、生命科學和永續發展產業的贊助商支持的私人公司提供風險債務，同時我們也希望利用現有平台更積極地向上市小型公司提供貸款。為了補充我 35 多年與小型上市公司合作的經驗，我們加強了現有的領導團隊，並任命 Paul Seitz 擔任首席投資長。保羅是一位經驗豐富的貸款專業人士，在風險債務市場擁有豐富的經驗，並幫助領導門羅的軟體和技術貸款垂直領域。

In order to achieve our growth objectives, we will need to be hyper-focused on efficiently yet prudently deploying the capital resulting from the merger into attractive and accretive portfolio assets that align with our core investment objectives. We have been and will continue diligently plan to rapidly deploy the proceeds from the merger.

為了實現我們的成長目標，我們需要高度集中精力，有效率且審慎地將合併產生的資本部署到符合我們核心投資目標的有吸引力且增值的投資組合資產。我們一直並將繼續努力規劃快速部署合併所得收益。

This plan includes deployment of debt in both the venture and public small-cap growth company space as well as leveraging the strength of the overall Monroe platform for deployment into more assets in the technology sector. Additionally, we are augmenting our team and further scaling our platform by adding select new talent that is strictly focused on sourcing new origination opportunities to further accelerate our capital deployment. We have already commenced that process and expect to continue onboarding new talent in the months ahead.

該計劃包括在風險投資和公共小型成長型公司領域部署債務，以及利用整個 Monroe 平台的優勢部署到技術領域的更多資產。此外，我們正在擴充我們的團隊，並透過增加精選的新人才來進一步擴展我們的平台，這些新人才嚴格專注於尋找新的發起機會，以進一步加快我們的資本部署。我們已經啟動了這個流程，並希望在未來幾個月繼續引進新的人才。

All of this is to ensure that Horizon is able to ramp the portfolio quickly post-merger and efficiently accelerate earnings growth. This is not just going to be a larger portfolio, it's going to be a more sophisticated and diversified portfolio supported by deeper origination channels and more robust credit governance.

所有這些都是為了確保 Horizo​​n 能夠在合併後迅速擴大投資組合併有效加速獲利成長。這不僅是一個更大的投資組合，而且將是一個更複雜和多樣化的投資組合，由更深層的發起管道和更強大的信用治理支持。

Management will be fully aligned with shareholders given the management and incentive fee waivers in year one. In short, we succeed when shareholders succeed. The cost savings for the pro forma company are real and identifiable.

由於第一年管理費和激勵費減免，管理層將與股東完全保持一致。簡而言之，股東成功了，我們就成功了。預計公司的成本節省是真實且可識別的。

We expect to eliminate approximately $2.5 million of G&A expenses from the current G&A expenses of the two combined companies, which translates to an immediate 30% reduction when compared to the aggregate levels for the standalone entities. This expected per share reduction in operating expenses on a pro forma basis comes from consolidation of legal, audit, administration, Board and regulatory costs.

我們預計將從兩家合併後公司的當前 G&A 費用中削減約 250 萬美元的 G&A 費用，與獨立實體的整體水準相比，這意味著立即減少 30%。預計每股營業費用的減少來自於法律、審計、行政、董事會和監管成本的合併。

Because of the complementary nature of our organizations, we don't anticipate integration risk. There's minimal overlap operationally and maximum efficiency to gain as we continue to scale. In addition, we will have the support and resources of the entire Monroe Capital asset management platform, which is currently approximately $22 billion in assets under management.

由於我們組織的互補性，我們預計不會有整合風險。隨著我們不斷擴大規模，營運上的重疊將降至最低，並獲得最高的效率。此外，我們還將獲得整個Monroe Capital資產管理平台的支援和資源，該平台目前管理的資產約220億美元。

Moving to slide 10, we have outlined the mechanics for the NAV-for-NAV Exchange. The illustrative exchange ratio of 1.1313 to 1.1373 shares of Horizon common stock for each share of MRCC common stock is based on estimated rise in NAV per share of $6.70 after giving effect to estimated transaction expenses as of June 30, 2025, and an estimated June 30, 2025 preliminary MRCC NAV per share range of $7.58 to $7.62 after giving effect to estimated transaction expenses, distribution of all undistributed earnings to MRCC shareholders and other transaction-related NAV adjustments.

移至第 10 張投影片，我們概述了 NAV-for-NAV 交換的機制。每股 MRCC 普通股可兌換 1.1313 股 Horizo​​​​n 普通股至 1.1373 股 Horizo​​​​n 普通股，此兌換比率基於截至 2025 年 6 月 30 日的預計交易費用後每股資產淨值預計上漲 6.70 美元，以及在考慮預計交易收益2025 年 6 月 30 日 MRCC 每股資產淨值初步範圍為 7.58 美元至 7.62 美元。

Based on this illustrative exchange ratio, we expect MRCC shareholders to own approximately 37% of the combined company immediately following closing. The final NAVs utilized to determine the exchange ratio will be determined no earlier than 48 hours prior to the closing of this transaction.

根據該說明性交換比率，我們預計 MRCC 股東將在交易完成後立即擁有合併後公司約 37% 的股份。用於確定兌換比率的最終資產淨值將在本交易結束前 48 小時確定。

I will now turn the call back over to Ted, who will walk you through the expected transaction time line, before we open the line for any questions.

現在我將把電話轉回給 Ted，他將向您介紹預期的交易時間線，然後我們再接聽您的提問。

Thanks, Mike. With that, here's our expected time line for the merger. The next major step will occur as soon as this month as the MRCC and Horizon joint proxy statements and Horizon prospectus and registration statement are being prepared and will be filed with the SEC.

謝謝，麥克。以下是我們預計的合併時間表。下一個重大舉措將於本月盡快實施，MRCC 和 Horizo​​n 的聯合代理聲明以及 Horizo​​n 招股說明書和註冊聲明正在準備中，並將提交給美國證券交易委員會 (SEC)。

Based on this timing, we expect we will be in a position to hold a joint MRCC and Horizon shareholder meeting as soon as December 2025 to obtain the required shareholder votes, with the transactions finalized and the merger closing shortly thereafter. Until closing, both companies will continue to operate independently while preparing for capital deployment and executing a seamless integration plan.

根據此時間表，我們預計最早將於 2025 年 12 月召開 MRCC 和 Horizo​​​​n 聯合股東大會，以獲得所需的股東投票，交易將最終完成，合併也將在不久後完成。在交易完成之前，兩家公司將繼續獨立運營，同時準備資本部署並執行無縫整合計劃。

Our focus will remain on ensuring continuity for our borrowers, stability for our investors and strong alignment across all teams. We believe this transaction takes the best attributes of both MRCC and Horizon and creates a better business development company with more capital, more scale, more earnings power, better efficiency and attractive, sustainable returns for our shareholders.

我們的重點仍將是確保借款人的連續性、投資者的穩定性以及所有團隊的緊密協調。我們相信，此交易將融合MRCC和Horizo​​​​n各自的優勢，打造一家資本更雄厚、規模更大、盈利能力更強、效率更高、股東回報更具吸引力和可持續性的更佳業務發展公司。

It is a strategic, transparent and long-term focused combination designed to benefit all shareholders. We are excited about the future and confident in the value we will unlock together. To our shareholders in MRCC, thank you for your support and partnership. We believe this merger is a natural next step in our strategic journey and a catalyst for future growth.

這是一個具有策略性、透明性和長期重點的組合，旨在使所有股東受益。我們對未來充滿期待，並對我們將共同釋放的價值充滿信心。對於 MRCC 的股東們，感謝你們的支持與合作。我們相信，此次合併是我們策略進程中自然而然的下一步，也是未來成長的催化劑。

With that, we will now open up the line to take your questions.

現在，我們將開放熱線來回答您的問題。

Thank you. We will now be conducting a question and answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Christopher Nolan, Ladenburg.

克里斯多福諾蘭，拉登堡。

Hey guys, can you hear me? Okay. Let's see. The two steps. If I understand, Ted, correctly that the portfolio is going to be -- the MRCC portfolio is going to be sold to Monroe's nontraded BDC, I presume pretty close to the marks, the debt paid down and then the cash proceeds basically sold to Horizon. Is that a fair summary?

嘿夥計們，能聽到我說話嗎？好的。讓我們來看看。這兩個步驟。泰德，如果我理解正確的話，MRCC 投資組合將會被出售給門羅的非交易 BDC，我推測價格非常接近目標價，債務償還後，現金收益基本上會出售給 Horizo​​​​n。這是一個公正的總結嗎？

Yes.

是的。

Okay. And so I estimate, just back of the envelope, $430 million in terms of MRCC's fair value in the first quarter, $270 million in revolvers, the 2026 notes, that's $160 million cash give or take to Horizon. And what premium -- because this is effectively an equity raise from Horizon's perspective. Is this cash being sold 1 times book or a little bit above book?

好的。因此，我粗略估計，MRCC 第一季的公允價值為 4.3 億美元，循環信貸額度為 2.7 億美元，即 2026 年票據，對 Horizo​​n 來說，相當於 1.6 億美元現金。還有溢價——因為從 Horizo​​​​n 的角度來看，這實際上是股權融資。這些現金的售價是帳面價值的 1 倍還是略高於帳面價值？

Chris, the transaction will be NAV to NAV, and the NAV will be struck at the time right before the merger is complete. That's how you should think about it.

克里斯，交易將以資產淨值對資產淨值的方式進行，並且資產淨值將在合併完成之前確定。你應該這樣想。

Okay. So from Horizon's standpoint, this is just a very cost-efficient equity raise, correct?

好的。那麼從 Horizo​​n 的角度來看，這只是一次非常具有成本效益的股權融資，對嗎？

Very much so, yes.

是的，非常如此。

Okay. Got it. And then the $2.5 million in G&A expenses and the waiving of the management fees for 12 months, I applaud that. But do you guys have any particular targets in terms of yield, net investment income yield on NAV or anything? See, one of the issues with both companies has always been slightly heavier expense structure. And while I appreciate the sentiments in terms of lowering that, I'm trying to see whether or not you guys have any hard targets that you want to try to achieve.

好的。知道了。然後是 250 萬美元的 G&A 費用和 12 個月的管理費減免，我對此表示讚賞。但你們在收益、淨值淨投資收益收益率或其他方面有什麼特別的目標嗎？瞧，這兩家公司一直存在的一個問題就是費用結構略重。雖然我很欣賞降低這一水平的意願，但我想看看你們是否有想要實現的硬性目標。

No, we usually don't put in hard targets. We try to run the company as efficiently as possible. As you know, venture debt is a high-yielding portfolio. And so we'll continue to run it out as we have been.

不，我們通常不會設定硬性目標。我們努力盡可能有效率地經營公司。眾所周知，風險債務是一種高收益投資組合。因此，我們會像以前一樣繼續使用它。

Okay. And then is there going to be -- because Horizon is going to have a significantly larger portfolio, what is the timing in terms of deploying this capital?

好的。那麼，由於 Horizo​​n 的投資組合規模將大大增加，部署這些資本的時機是什麼？

Yeah. We believe we're going to be able to deploy this capital fairly rapidly. We've been going through discussions and looking at opportunities there. So we think that, as we've mentioned in our presentation, that we will be able to make this neutral, at least to shareholders in the first year, and hopefully we can do better.

是的。我們相信我們將能夠相當迅速地部署這筆資金。我們一直在進行討論並尋找那裡的機會。因此，我們認為，正如我們在演示中提到的那樣，我們將能夠保持中立，至少在第一年對股東而言是如此，並希望我們能夠做得更好。

When you say neutral, do you mean neutral to EPS, neutral to NAV? Just trying to get a clarification.

當您說中性時，您是指對 EPS 中性，還是對 NAV 中性？只是想得到澄清。

Yeah. Neutral to our EPS.

是的。對我們的每股盈餘而言是中性的。

Okay. Great. I guess the final question is, does this start moving you up in terms of larger -- does this start moving Horizon up to larger deals or is it going to stay sort of within the same type of size deals that traditionally you have?

好的。偉大的。我想最後一個問題是，這是否會讓你們在更大交易方面有所提升——這是否會讓 Horizo​​n 承接更大的交易，還是會保持在你們傳統上相同規模的交易範圍內？

Yeah. I think it certainly allows us the opportunity to do deals that would be a little bit larger. We'll have a larger capital base to work with. But also the relationship with Monroe gives us the opportunity to do deals that are substantially larger when you combine both companies. So we're already seeing that go into practice now with some of the deals that we've got term sheets out on.

是的。我認為這確實讓我們有機會達成更大規模的交易。我們將擁有更大的資本基礎。但與門羅的關係也使我們有機會在合併兩家公司後達成規模更大的交易。因此，我們已經看到這項措施已在一些已出台條款清單的交易中付諸實行。

All right. Good show. You guys know how to make an earnings call a lot more exciting. Thank you.

好的。好節目。你們知道如何讓收益電話會議變得更加令人興奮。謝謝。

Thank you, Chris. You hit most of the key points as usual. Our view on this is it's a win-win for everyone, the MRCC shareholders and the Horizon shareholders

謝謝你，克里斯。您一如既往地觸及了大部分關鍵點。我們認為，這對 MRCC 股東和 Horizo​​​​n 股東來說都是雙贏的

Yeah. No, it's an interesting transaction, and it's creative. Kudos to whoever structured it. It does address issues overhanging MRCC. And I think it does provide a neat way to leverage the Horizon platform because Horizon is trading above book and it's able to utilize the ATM. So and I think the venture debt space in general is a good place to be. It has natural barriers to entry, and I think the deal makes a lot of sense. Okay, thank you.

是的。不，這是一次有趣的交易，而且很有創意。向構建它的人致敬。它確實解決了 MRCC 面臨的問題。我認為它確實提供了一種利用 Horizo​​n 平台的巧妙方法，因為 Horizo​​n 的交易價格高於帳面價值，並且能夠利用 ATM。所以我認為風險債務領域整體來說是一個好地方。它具有天然的進入壁壘，我認為這筆交易非常有意義。好的，謝謝。

You watch. We've got big plans for Horizon

你瞅瞅。我們對 Horizo​​n 有宏偉的計劃

Ted, are you hosting the Cubs game this year?

泰德，今年你會主辦小熊隊的比賽嗎？

Yeah, come to Chicago.

是的，來芝加哥吧。

(Operator Instructions)

（操作員指示）

Paul Johnson, KBW.

保羅·約翰遜，KBW。

Hey, good evening. Thanks for taking my questions. Is there any sort of lockup at all in place for the Monroe shareholders after receiving rising shares?

嘿，晚上好。感謝您回答我的問題。門羅股東在獲得上漲的股份後，是否有任何形式的鎖定期？

No, I don't believe there's any contemplated in the transaction.

不，我不認為這筆交易有任何考慮。

Got it. Okay. And then the 2,500 -- or sorry, the $2.5 million of G&A expense synergies, what is kind of like the trailing combined four-quarter or trailing year of G&A expenses between the two BDCs prior to the synergies?

知道了。好的。然後是 2,500 — — 或者抱歉，是 250 萬美元的 G&A 費用協同效應，在協同效應之前，兩個 BDC 之間過去四個季度或過去一年的 G&A 費用總和是怎樣的？

I think if you look on slide 9 in the presentation, it'll give you the information that you're looking for, if you see the MRCC and Horizon is at $8.4 million and then the combined afterwards is the $5.8 million. And that's the savings that Mike spoke about in the script.

我認為，如果您查看演示文稿中的第 9 張幻燈片，它會為您提供您正在尋找的信息，如果您看到 MRCC 和 Horizo​​​​n 為 840 萬美元，然後合併後為 580 萬美元。這就是麥克在劇本中提到的節省。

Got it. Okay. And then more of a technical question, but I mean does the merger at all, does that affect the total return hurdle calculation look-back in any way?

知道了。好的。然後更多的是一個技術問題，但我的意思是合併是否會以任何方式影響總回報障礙計算回顧？

No, it does not. They'll still be calculated as normal calculated with the look-back and the same features.

不，不是的。它們仍將按照正常方式進行計算，並採用回顧和相同的功能進行計算。

Okay, great, thanks, it's all for me.

好的，太好了，謝謝，對我來說就這些了。

At this time, there are no further questions. This concludes today's teleconference. We thank you for your participation. You may now disconnect your lines

目前，沒有其他問題。今天的電話會議到此結束。我們感謝您的參與。現在您可以斷開線路