Horizon Technology Finance Corporation Q2 FY2025 earnings call

1. Announced a strategic transaction to merge Monroe Capital Corporation and Horizon Technology Finance Corporation. 2. Transaction steps: First, MRCC sells substantially all its assets to MCIP, then MRCC merges with Horizon via NAV-for-NAV share exchange. 3. Horizon to receive an estimated $165 million incremental equity capital. 4. HTFM agrees to waive up to $4 million in advisory fees over the first 4 full fiscal quarters post-closing. 5. Expect to eliminate approximately $2.5 million of G&A expenses. 6. Added Paul Seitz as Chief Investment Officer. 7. Plan to rapidly deploy merger proceeds into attractive portfolio assets in venture and public small-cap growth spaces, leveraging the Monroe platform and augmenting team with new talent.

1. Transactions expected to close in December 2025, conditioned on concurrent closing, regulatory approvals, and shareholder approvals. 2. Anticipate rapid deployment of merger proceeds into accretive portfolio assets. 3. Expect accretive net investment income and cost savings from G&A expense elimination.

1. Forward-looking statements are subject to risks, actual future results may differ materially from those expressed. 2. Transactions are subject to various closing conditions and regulatory approvals.

Q: About the two steps of the transaction, is the MRCC portfolio going to be sold to Monroe's nontraded BDC pretty close to marks, debt paid down and cash proceeds sold to Horizon?

A: Yes Q: On G&A expenses and yield targets, do you have hard targets?

A: No, we usually don't put in hard targets, try to run the company as efficiently as possible Q: Timing of capital deployment?

A: Believe we're going to be able to deploy this capital fairly rapidly, neutral to EPS initially Q: Does this start moving Horizon up to larger deals?

A: Allows the opportunity to do deals that would be a little bit larger, with the larger capital base and relationship with Monroe enabling larger deals Q: Is there any lockup in place for Monroe shareholders after receiving Horizon shares?

A: No, I don't believe there's any contemplated in the transaction Q: About the $2.5 million of G&A expense synergies, what's the trailing combined 4-quarter or trailing year of G&A expenses?

A: Refer to Slide 9 in the presentation Q: Does the merger affect the total return hurdle calculation look-back?

A: No, they'll still be calculated as normal with the look-back and the same features