HRZN - Earnings call transcript Q4 2017 | Horizon Technology Finance Corporation

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Operator

Good morning and welcome to Horizon Technology Finance's Year-End 2017 Conference Call. Today's call is being recorded. All lines have been placed on mute.

We will conduct a question-and-answer session after the opening remarks, and instructions will follow at that time. I would now like to turn the call over to Megan Bacon of Horizon, for introductions and a reading of the Safe Harbor statement. ahead. go Please

Megan Bacon

and welcome XXXX and Rob Horizon Finance Michaud, Technology Chairman Financial Thank call. to Representing quarter President; Jerry Officer; conference Chief are Trolio, the fourth Chief and Officer. you, Executive the Dan company Pomeroy, today

begin, website to point I at earnings horizontechfinance.com. the out available are like Form and release XX-K would on we that QX Before press the company's

will Now, following the statement. read I Harbor Safe

a to call, Horizon expects, including Technology Finance future certain company. make the forward-looking statements statements. regard projected in similar basis forward-looking in anticipates, Certain uncertainties and from expressions believes, conference statements. These inherent will these statements are identify conditions. forward-looking Words with used forward-looking on statements this the factors or could to as results material of the performance future actual to During such results intends, subject those predicting cause are differ to

or the detailed the to Rob including the Risk these XXXX. And the whether this Factor undertakes or I in The At of Form as company to company's the information, future revise and of in to update discussion any year-ended Securities for XX-K factors December some the XX, with filings Exchange are events, otherwise. forward-looking no company's time, like would a call obligation over result turn statements new Pomeroy. Commission,

Rob Pomeroy

to platform for order you morning Horizon us. In our joining investment Good in we thank XXXX, to snowy all Connecticut the from continued enhance portfolio and pipeline. grow and

rate, a prepayments progress of in highest was turnover our net quarter-over-quarter our originations, important included portfolio In quarter, our $XX pleased quality new a gratifying the resolving of The also portfolio. we history. the time, growth million in XXXX. resulting underperforming we XX% level especially credit all the in portfolio loans. XXXX this I'm these of significant in which of report made funded focused to and in second fourth record our on our in improving light size growth in XX% in initiatives we During on

result, with XX% a larger, start XXXX and portfolio of over a we is that As XXXX vintage transactions. comprised

as a transactions on year. income of most the the expect more be period interest-only We during predictable will stream, these

XXXX, activity now portfolio our prepayment made vintage to up XXXX-XX expect of normalize transactions. during also as of XX% We is

As mentioned, originated during eight floating Horizon approximately the loans $XX new fourth totaling quarter, rate million.

of growth, ended the in for the full-year, the full-year, investment ratio to We This $XXX toward activity ratio leverage a the onboarding totaling loan this our XX BDC portfolio XX.X% for one us and targeted We move grow industry. funded loans to million quarter able leverage new increased For the were we achieve strong our allowed the yield portfolio portfolio highest portfolio by yields, million. quarter, of XX%. XX%. earning with of $XX while and maintaining a yields

resolved on non-accrual This At Incorporated. million by Interleukin the in was was its itself loan which on that was year-end, was As many A with February loans. earning to resolved only loan in acquisition the Origin originations see later new of full the placed quarters. to Interleukin impact Signal, focus was the loan that coming November larger had Genetics. we In in loan to our its one was address we related over of the repaying venture was occurred Digital expect which year $X.X non-accrual portfolio XXXX, XXXX. underperforming fourth of last on major quarter,

profile. portfolios entire year-end reduced credit we to addition portfolio, enhanced overall to of and In underperforming underperforming loans, and have our we resolving quality the continue number XXXX, manage since percentage aggressively our loans, credit the of

in related share. income September, to of and higher factors: following the bond timing the prepayments, we net NII the reported was expense profitability new issuance loan of by closings. investment quarter, the $X.XX interest For per our of impacted timely

As early profitable quarter, with portfolio. most the that fourth portfolio allowing earnings part capital percentage larger existing did were which opportunistic, accelerated fee into the liquidity quality events of able includes in we fourth the our companies older opportunistic reduce from not of model. lending investment quarter. our by during to where loan or our end quarter. we either eight refinancing NII By be the in of Horizon a new the loan defensive retain venture can by experienced and originations reflect integral later is Liquidity loan; the prepayments of defensive, power to loans of income; an our quarter, We in occurred prepayments portfolio. the customer loan newer opportunities redeploy realizing us our events Portfolio turnover the

with and recapture of While during contributed prepayment for they our back power we future cap quarters. management deferred of did have income the portfolio, strong investment agreement the The prepayments generate the not our allows mechanism in earnings from period. defensive activity our look deferral prior fee incentive advisor the opportunistic high levels to fees in and seen

XXXX. fourth waive during not previously the the incentive four of subject amount calendar small will would The a this advisor deferred During fees. recouped for any deferred the amounts waivers be advisor that quarter otherwise to of the be recoupment. fourth quarter, These quarters of further have and amount has the to recoupment XXXX, of could the recoverable waive agreed to

investment during our the asset change in realized to net and distributions the and quarter flat gains was net losses our declined unrealized monthly to value for $XX.XX per share, income. due quarter. The essentially exceeding Our primarily

distributions that took impact in waiver Based notes, in time. at from the $X.XX based Turning to over covered upon XXXX positive by growing and be recently positive set fees rising always our NII supported by and the steps been It we income. our anticipated level the upon and all XXXX, distributions. XXXX, has including to portfolio, can our of practice incentive a issuing announced spillover rates, our deferred our

totaling per XXXX, and April, May, June share. declared monthly $X.XX board Our distributions for

declared per of now have our $XX.XX IPO. cumulative We distributions since share

to products net demand investment lending of time. distributions venture ratio, target cover our steady income growing ahead, and over our investment our Looking our pipeline healthy toward We a with see and portfolio opportunities. committed to remain leverage we for

programs redeploying will the managing to over quality yields, risk the success upside our and XXXX the source provide well made XXXX. the dedication In advisor's and the onboarding XXXX, new calls, as includes proud very meet for objectives has value, strategic retention past to providing months going and origination I've returns, and to platform commitment team stability position appropriate in placed our team through existing We're their This improved strong in during ensure Horizon which demonstrated our We of that detail now in credit to enhance as environment, financial warrants call and into previous that will to experienced Dan, will have who XX Jerry, continue and and management who members development the equity hiring to condition. operating to XXXX. turn we fees. performance loans I'll and over strong with potential market our capabilities. and then, actively investments update outlined portfolio maximize directors Jerry? professionals, you the on efforts lending our adjusted business

Jerry Michaud

morning Good Thanks, Rob. everybody.

We eight product enhanced the with venture origination demand and originations. led the floating originated our continued quarter quarter, new loans level During of combined rate our fourth to marketing loan $XX strategy, million. in record a platform for totaling

quarter, and $XX by commitments QX. We the We with committed pricing the the yields quarter over million respect the achieved of of with million in $XX onboarding full-year. during grew or portfolio our result, $XX loan to new during for during a closed portfolio strong million. year of loan remain XX.X% quarter, the ending disciplined backlog As XX% XX.X% generating and XX.X% yields while for

to maximize fees high yield portfolio ETPs Our portfolio. returns with from prepayment structuring onboarding maintain and as reflects portfolio our our to consistently combined yield exit our inception, strong and transactions pricing companies strategically our ability since

of As since with consistently one portfolios of in a an portfolio result, the industry our Horizon has average yield the yielding highest inception. had XX.X% BDC

Now like we In $XX of the companies we quarter, to to minute a portfolio million. as new medical begin our qualitative fourth three I totaling about added XXXX. talk aspects would the take device

raised equity have XXXX, these All revolutionary quality investors. and during science of are significant life by backed have companies high technology,

totaling during raised companies added also by venture our and are technology backed $XX new These to growth We equity XXXX, knowledgeable technology have capital firms. portfolio and technology and million. two XXXX additional experienced investments high

our Lawyer, by upsized Rocket three HealthEdge, of combined million. we a investments addition, in high In our and Solutions, BridgeX performing companies $XX portfolio

investments Importantly, we of and and we exited with or penalty all aged transactions QX portfolio, to in no funded accretive. significantly of the in added fees our QX in prepayment new had higher that of prepayment ETPs place were ETPs lower that XXXX new investments and rates,

newly year, well predictable originated ETP a as At equity with a of larger million. portfolio income, warrant the we result, income enhanced entering stream and interest of XX from we companies potential, the XXXX interest-only value a fee their prepayment hold more $XX.X fair portfolio end a as period. As enter transactions and positions in with with

addition from originations, experienced our totaling events portfolio liquidity during to quarter the eight In we record $XX.X million. companies

the additional to totaling totaling Subsequent to funded positions we transactions of million. in warrant $XX loan three were five and exited companies. continue We million hold an year-end, $X.X awarded new

committed to a $XX million. than over nine opportunities new today, of As million of in pipeline more of of backlog have companies we $XXX a

XXXX. strong and venture fourth the the at QX quarter with environment, U.S. and Looking capital capital in remains par investment of venture on QX

quarter with $XX our half investments ending VC over VC-backed for the to funding opportunities billion on the on billion down fell seen by XX $X.X investment completed raised according expansion exit XXXX. in were across fund early as of and XXX activity values X,XXX topped impact XXXX billion late-stage For exit funds. larger the U.S. in year X.X% XXXX; an time the with reported IPOs had make U.S. seek lowest second Book. XXXX, full-year Fitch while trail values XXXX. saw improving during to both invested early-stage XXXX, in from of biotech their of the by short to however in the with raising slowed the quarter VC we've exit end XXXX, billion fourth C-stage slightly second $XX Moneytree. trended the quarter, we been funding XXXX. continue and $XX since IPOs the increased larger Biopharma deals as second once down Fourth of of well from the transactions activity in year, again

first-time position team best seeing resulting borrowers in our origination market innovative as science Biotech. opportunities for competition loans transactions experienced was companies, that and existing sector those continues Aerin produced growing our VC includes in In investment for from Conventus technology funding Healthcare demonstrate Turning by life continue our core including and growing dynamic refinance lending and quarter of combined This a the these Though science for revolutionary strong, various to renewed in we're quarter, to fourth debt. venture Orthopaedics, device to improvements history, device remains markets. as in both Medical, companies. our driven medical medical for venture this to financing market well Vero solid our we borrowers. due debt equity. a technology seeking to life market This number be with

as diagnostics, areas healthcare tele-health. in investment as by notable in Aetna, drug expectations. led HealthEdge announced CVS continues delivery In our and the So health, continue exceed such healthcare disease portfolio, activity upsized QX, see impacts insurance fourth our prescription we In we transactions own acquiring quarter, as market, we consolidation and the were it investments personal to which noted, to considerable in market.

intelligence, investing Internet the companies Looking in healthy This VC sector, explore the technology Horizon sector VC opportunities tech nearly quarter. see interesting to our auto in cyber overall investing strong. technology ad and investment cleantech as based security and capital and remains at companies market in In companies. the our artificial auto market, portfolio Internet remained that Venture A area greater we overall We here. cautious largest represented a added investing Rocket gain during advisory and is strong AI-driven prominence funding the see led the has while GroundTruth an company. continues was location Internet, all on support upsized software, broader legal as in Lawyer, by continue living, global Company a here. QX, Internet are tech we emphasis continue smartcard of technologies. limited tech growth to to giants VC remain area the market, auto the to to major targeting

third environment similar the was competitive the what venture experienced landscape, to debt QX in the in at we very quarter. Looking

equity VCs transactions yields created We some technology partially in banks markets, life resulted opportunities investments but for continue we looking and our win more not has sciences. targeted in science from with QX. quality opportunities later-stage onboarding in to pressure competition exits and investment We're for life further and attractive to see companies. This see particularly seeing mature which pricing has technology continue portfolio

to reporting origination, was forward. continue as some notable competition quarter levels also lending should that competitors with high well competition in other from some venture as It fourth prepayment the see affect lenders We activity. rational of healthy activity going

XX expect they refinancing markets to exit to companies XXXX, in add to they or VC-backed development Aerie, XXXX, over months Heading previously or late-stage As flow sold be back and to M&A announced, improve. the robust a likely for to have solid drug XXXX, we launch. in to market many IPO deal Based debt into coming $XXX the biotech debt their after market. portfolio exited venture venture and will market debt new existing lending market science companies overall see as on less the wait support next this, from continue million life

adjusted is well-positioned our focused platform benefit enhanced from of believe Given these investment lending We pipeline and drivers, our environment to and with grow lending to investment a remain portfolio, on high and we venture continuing specific quality solid Horizon will update, loans sourcing upside. opportunities. robust rational over greater that now warrant sectors potential the of appropriate will Dan. With risk and returns call I technology turn life we that markets to science the believe provide for in

Dan Trolio

everyone. Thanks, full-year income due for given of of smaller on will our the of lower briefly the financial investment for the our loan the good earned results to quarter size fourth was average morning XXXX quarter decrease as of investments and I fourth quarter Jerry, total million for The $X.X XXXX. interest $X and portfolio. discuss income Horizon to compared million fourth XXXX. now

in $XX investment XXXX million year. to For the year-ended prior total $XX.X income compared was the million

This the our earning With good XXXX. our fourth debt year-over-year. activity, with a from base provides into by momentum quarter XX% portfolio us to we investment able increase going strong were

performance. of quarter, consistent with and onboarding fourth achieved our to in XX.X% we the For compared historical yields quarter, third XX.X% the

the loan quarter. year's last and the to Our compared portfolio XX.X% quarter, third XX.X% XXXX yield for quarter for of in the fourth was XX.X% fourth

XXXX. For the XX.X% XX.X% onboarding a full-year, compares XX.X%. yield onboarding and to of This we for of yields and achieved a of loan yield portfolio XX.X% of yields

to fourth general to to due Total XX% was a year's in expense compared as and XXXX $XX.X of no flat XXXX. net Turning related expenses notes. quarter by for with average in of years. million of quarter quarter our by million We XXXX fees of fourth expense compared XXXX $X.X $XX.X year, fourth to to quarter. the total net fourth fee while due the of decrease prior incentive Interest increase $X.X expenses, the XXXX decreased of The to administrative $XXX,XXX period, compared full-year mainly management fourth $XXX,XXX flat compared $XX fee the of recorded in outstanding a $X.X for in as prior to driven increased the the Interest XXXX. million previous our average redemption base borrowings of There's higher $X.X by with expenses expense the and million expenses expense interest quarter was were year for fourth incentive million. the in million were decreased full-year by million XXXX. for essentially expense fee quarter and also million in the to XXXX. to last compared to for the $X.X Professional expense compared borrowings increase one-time

related XXXX unamortized mentioned income for specifically notification assets decreased million our per the $XXX,XXX the redemption one-time portfolio. $XX share debt interest and by due in million $XXX,XXX that each As of experienced Considering our reflect in $XXX,XXX note occurred December, our the year for investment originations notes. and earnings not quarter, of issuance a compared we XXXX of XXXX. $X.X loan Base totaling the our the required period power was we per investment of quarter did our management average of earlier, the the expense the for new quarter decrease cost, additional fourth NII to for share $X.XX expense Net XX-day pay-off to to share quarter to larger of fee with the of XXXX to the quarter of due for third $X.XX the paid $X.XX fourth the per year. in

share, For income income of per net $X.XX period. the to per distributions XXXX. was the share $X.XX at $X.XX compared at year, as of end $X.XX share share investment the $X.XX year-end taxable we our spillover per of earned $X.XX prior share, of year paying share per our per compared with per in earnings and undistributed After

$XX.XX share our in per quarter. the As as to $XX.XX of December compared XX, was NAV prior

discussed an earlier, distribution totaled investment earning scheduled an To in and with four in companies, income monthly fair an million offset debt prepayments. aggregate our XXXX As $XX Rob investment our XX investments XX of aggregate new value investments in $X.X companies is portfolio million, which other originations by million of $XXX aggregate positions quarter, net with value due summarize $XX for an $X a to equity which exceeding million. our ended and activity includes portfolio fourth primarily and for with decrease warrant million, payments with in in companies this million were We of $XXX value quarter. the of fair the fair principal of $XX.X million principal portfolio

million which $XX compares originations loan by to million offset in million New million portfolio XX principal million $XX in were principal XX by and loan new the which principal companies $XX principal in offset of to were to $XX prepayments. for scheduled $XXX payments This $XX million portfolio originations XXXX full-year prepayments. companies payments, and totaled for scheduled

cash $XX with at credit available as Horizon Looking available facility KeyBank. million had under funds to million at as year-end. well liquidity, includes deploy $XX This our our

million under KeyBank we $XX outstanding XX, December had facility. our of As

On notes were XXXX, advantage of notes balance in front, our this X.XXX% set the took capital of due XXXX. in which upside conditions favorable offering, XXX% $XX sold of million of complete offering. an outstanding proceeds to Horizon markets we notes the X.XX% market during XXXX. from the and issued we to redeemed Using mature

We expect an $X.XX on annualized savings this of basis. per will result in interest net share

ratio, our last portfolio Our rise. portfolio almost X. overall One increase questions, was our X.X at X. and XX, target rates with upon in December goal from the leverage coupons experience benefit structured our size rates increase we slightly flow room amount that our ratio net leverage At cash leverage XXX% increase Accordingly still X.XX bear cash as increasing of of we are to continue ratio topic before portfolio in the to we discussed maintain interest a and our principal both floating Based current go grow the position of expect prepayments, in margins. amortization the XXXX. investments the to to outstanding interest our remains debt and or target when within have we've and interest will of past, to to rising from environment our to Horizon interest and income our expanding normal

note opening we of during plan I'd April quarter hold like that first to remarks. Lastly, our to to week the conference concludes results our This report XXXX XX. next call

be this may will to have take you happy time. We questions at

Operator

Instructions]. [Operator you. Thank

KBW. comes Johnson of question the of first Our from Paul line

Your is now line open.

Paul Johnson

this exclude $X.XX have the non-cash fourth when get at Thanks the rate go XXXX, of your we earnings questions. we’re when what to to do how year. of to because just morning dividend level. $X.XX run first maybe or sort -- just of charges, a is in that Good quarter around look sort to still to relates interest we about the really taking we guys. it first quarter just We My that for with get level better even has so sense looking my question to earnings

Rob Pomeroy

necessarily prepayments, Focus income to is some for of question. Yes, sort comes, the Rob. Paul, level comes I have of demonstrated prepayments that But history call from time, quarter-to-quarter. predictable incomes and this a gap my where over have of high but back not prepayments that portfolio. relative the appreciate pure with in the we on comments their -- the other has liquidity just the the the during the accelerated amount quarter events level to our than that's

Paul Johnson

Okay.

Rob Pomeroy

portfolio be Xst course have you take account earning forward, of to will into larger from going so. the we basically January And

Paul Johnson

the the on to has Interleukin repaid resolved whole next that Sure, exited, non-accrual sure, was quarter was guess during there they written I what benefit. ScoreBIG, but mentioned know during off was the have any you'll that do My question I quarter, around other that non-accrual? the you color

Rob Pomeroy

assets entity XXXX entered ABC third-party and Sure. ScoreBIG you would in created its that receive Yes, into during royalties license agreement. with that if process agreement that assigned from was a Horizon license And process. of an to the remember all a

So in we investments the a has terminating. the assigned now asset to loan that's still on loan so our Royalty scheduled agreement XXXX, place of on been XXXX. have new investments scheduled us been loans seen license the that you you'll then, therefore has in on the and the directly And double throughout books. were our and December see, and why triple agreement We had the

Paul Johnson

thanks same great mean And like Yes, then up pretty investment you or close and great. par, that to repaid excited you color. mark? marked was that like I I -- on there close that's Digital you to was pretty color did the so to just loan Okay, and that mean get in the then, February. another get was that, mentioned did for Signal that repayment full

Rob Pomeroy

close close -- into mark. the quarter to to with of We events. able and it financing all was agreement that pretty buyer, were buyer exited to were first a enter was which provide It an

in occurs vision fair the first the on we asset had exit XX/XX So reflects transaction -- that at the quarter. value DSC the which we

Paul Johnson

of more question the XXXX. the from not -- more outlook large of We that's you ago, long newer year. something portfolio is in And in just like it this little for opposite then ease just sounds the it Okay. the vintage or expect is heard to concentration competitor your last to specific your prepayments of investments because a a my too sort up And then is bit

Rob Pomeroy

primarily has We of Horizon think our part I Yes, Prepayments of venture the that model. us our expect average it's XXXX, normal and a prepayments are our was the just to our age with do -- portfolio of lending portfolio. younger. vintage during market and

Paul Johnson

Those questions. thanks. all Okay, are my

Operator

Thank you.

Our comes Fargo. next question of Wells from Bock Jonathan

now is line open. Your

Fin O’Shea

Fin on for not Jonathan best, this O'Shea Bock Hi deployment give on can can morning. that strong the and competition where a Congratulations in of the like and we of in kind best it deployment color such? Kind the of guys on if you looks are quarter how considering one you us some kind the cycle, give of color activity strong on was so some us record.

Jerry Michaud

Two honestly Yes, I quarter in third had expected we actually even call. expected so is third backlog to bit fund have our third we a of higher of the a had to the fundings. think presentation as I quarter building. We transactions started well. a actually to hi, actually alluded Yes, closed this before this We little quarter kind to Jerry if our Michaud. see

and in we in million So thought was quarter. the I $XX think we funded fund October to third which going

the create and we in underwriting I that And obviously and particularly to the that opportunities, third saw in basically staff the new in lot this start So second of the of been the fourth quarters staff of think our did to kind a relative to over with to this discussed managing do the last has building additions things we've has four actually year. quarter. director fortune half, from earlier

committed in do in fourth fundings those higher that's or Usually in the fourth actually basically quarter. quarter did the the we we which And be transactions accelerated the primarily but of of up but our in set kind of funded to ramp-up quarter. We most and we year, were have in our able of drove so the mid-month, committed very kind this fourth funding how backlog backlog to smoothly -- by get drove funded. pleased obviously grew, would we also that funded levels them actually had December were

the of or that like, the so quarters it and it the up back of in five actually a thought when very over compare of significant, and happen So we happened the looks of was you those. kind I QX year understand QX convergence was QX would of kind four but in some findings go last was it course built it

Fin O’Shea

originations the broader for No, capacity et BDC of the you? color. you capital out function or private out staff is platform of for at line, of limited course Are the are a cetera. To course And sort issuing a capital? there thanks and now raising that of

Rob Pomeroy

We are always looking capabilities. to expand our

We very have a team. experienced

approach we have the Dan quarter we cash top our prepays mentioned. liquidity target the and any and of normal that leverage, from amortization As the during still flow

still the So expand but we to active expect always ways to the in be on for market Horizon looking are Horizon also platform, we franchise.

Operator

Thank you.

with comes from next Our question Oppenheimer. Chris Kotowski

is line Your open. now

Chris Kotowski

question, my like I I just asked guess Thank Fin I'm think so good. quarter. Thanks. you. It looks a solid good

Rob Pomeroy

Chris. Thanks,

Dan Trolio

you. Thank

Operator

you. Thanks

from Securities. comes National Christopher question of next Our Testa

now is line open. Your

Christopher Testa

taking make you the my confirm, closed just right, wanted sure the for I of questions. Hey that say got $XX did guys. originations good figure to Thanks I Dan, in December? morning million

Dan Trolio

million. $XX

Christopher Testa

got it. million, $XX some okay more, Oh,

one big quarter, next with going pulling next kind in we of pull the even there but with the quarter, obviously target so through expect to coming is obviously a And going your the of to that to call, to back questions but just near you're the and I earlier prepayment guess into leverage. be have through down incomes the

you to earned. fees see with I'm So how I incentive $X.XX $X.XX just to from trying get lower even mean

Dan Trolio

$X.XX higher $X.XX things the the of bond expense was So all there the offering. just first is couple net for a in script, interest from of details were that of

-- to depending on from increased floating, we year course rates be be is on this our increased be magnitude -- the the floating magnitude order the and up also debt the but XXXX share all our go, So the notes as from but of there to of and last interest to on just do from partially $X.XX of our entirely on savings on because a of $X.XX down how the of far rates $X.XX, We it. interest fixed all coupon we lower expect order the portfolio well of rising that sort bond income offering as replaces spread. partially expect during or of same impact expect top-line rates portfolio of -- was

So June. distribution normal set a and we level board is to our we that coupled considered May, level with April, look and of what prepayments our as for forward

Christopher Testa

Signal it. you. to as got mentioned sense. Okay, be agreement going makes resolved is in that Rob you going royalties also quarters the on That Digital And where next February license you to SLI you're a that guys from? Thank receive

Rob Pomeroy

to assets new new sold were case, will see No. and actually DSC investment In company you a this the there.

Christopher Testa

it. be that curious line is get separate income, just be royalty that on at that show-up other look that? just going will a on from to we ScoreBIG any how should is Got or revenue to And -- item the going you

Rob Pomeroy

Going item. it line on yes, be be will income; a it'll other forward, different

Christopher Testa

got mine of Other rest and The answered. income, were okay it. all That's Thank from asked you. me.

Dan Trolio

Thank you.

Rob Pomeroy

Thank you, Chris.

Operator

Thank you.

of next James. question from Our Dodd Robert Raymond comes

line now is Your open.

Mike Koban

clarification originations answered you that for Hey the of I our on outlook guess of Dodd. been XXXX most you mine guys. Koban questions well. about This how for and I is think talk have Mike could for just the versus XQ as repayments timing for of Thanks quarter? honestly for Robert what taking think about

Rob Pomeroy

looking early up. to it's end where we'll really we're So say too

had loans the blue also out really come already other we've done -- they'll closed, or well. funded mentioned some play some can we Jerry us think be are for loan not. of as but Prepayments I one often whether have in

So the essentially within a flat the quarter. we to range of end reasonable portfolio be for expect the

Operator

Thank you. [Operator Instructions].

the from of next Casey Compass Point. Our Alexander comes question of line

open. line is Your now

Casey Alexander

that the one when that far XQ, Signal. I have replaced closed few had you Digital so all a questions first XXXX you is in Hi. loan loan of in say

Jerry Michaud

had loan. one We

Rob Pomeroy

Yes, one believe the that loan, is I yes.

Casey Alexander

for the of that balance the was than loan equivalent a Signal amount? more loan was And actually was Okay. it or what an Digital

Rob Pomeroy

The loan more is amount. actually the for than

Casey Alexander

Okay.

ScoreBIG Secondly which double as yet the royalty ScoreBIG of the now prior from triple structure? you or any received double is structure have current triple the either income

Dan Trolio

not have We yet. currently

Casey Alexander

end where on I'm ScoreBIG of or at but loss. loss so Okay. triple realized as right It appears your if though quarter, marked was double mean third you previous the statement, the unrealized I the unrealized is is marked realized looking ScoreBIG income another the that at below

Rob Pomeroy

itself a you're loss. the realized We that realized take and a correct. loss on is So a did loan

$X.X the new on placed the of million. fair book So the value asset at is

see cost you'll million. value $X.X at the So and the fair

Casey Alexander

income Sparrow guys received DURLAZA? ScoreBIG happening the quarter-to-quarter, $XXX,XXX yet and triple color with any I another but I Sparrow noticed from you down or no have you also Okay that do as is royalty underlying was is on no marketed interest of guess double. what's either drug which have royalty which as Pharmaceuticals

Rob Pomeroy

longer. around the taken it was the FDA, the approved formula primarily had to for had drug the consistent manufacturing get little when of sure previously to with process too we so to Correct, commercial launch think manufacturing Casey make with I a and has it yes was what be. that drug can't they can will to to refilling was I the drug a relative timing so the through when that that much the had to markdown go of the been, issues proved, be again related say but it they

it -- As a result, that valuation. when cash which and look to when we launched, out bit impacted the were looked at come that is we flows the from pushed that expect a we little when at

Casey Alexander

you of scheduled currently? Are date launch any aware

Jerry Michaud

can't private We we really company get basically a into that. they're

Casey Alexander

right. All

Okay, that's Thank you. have. I all

Operator

turn Robert closing no Pomeroy, like for comments. I call you. and CEO Thank are Chairman further would questions. back There now to the to

Rob Pomeroy

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

Horizon Technology Finance (HRZN) 7 Mar 182017 Q4 Earnings call transcript