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HORIZON TECHNOLOGY FINANCE CORP FILES (8-K) Disclosing Termination of a Material Definitive Agreement

June 17, 2014

Item 1.02 Termination of a Material Definitive Agreement.



On June 17, 2014, Horizon Credit III LLC ("Credit III"), a wholly-owned subsidiary of Horizon Technology Finance Corporation (the "Company") repaid all of its outstanding obligations to Fortress Credit Co LLC ("Fortress") pursuant to a certain Loan and Security Agreement, dated as of August 23, 2012, by and among Credit III, as borrower, and Fortress, as lender and administrative agent (the "Fortress Facility") and terminated the Fortress Facility. The Fortress Facility had a facility limit of $75 million and bore interest based upon the one month London Interbank Offered Rate ("LIBOR") plus a spread of 6.00%. The term loans extended pursuant to the Fortress Facility were collateralized by all loans and warrants held by Credit III. At March 31, 2014 and December 31, 2013, the Company had actual borrowings outstanding of approximately $10.0 million under the Fortress Facility. In connection with the termination of the Fortress Facility, the Company also terminated a certain Sale and Servicing Agreement, dated as of August 23, 2012, by and among the Company, as originator, Credit III, as buyer, Horizon Technology Finance Management LLC, as servicer, U.S. Bank National Association, as collateral custodian and Fortress, as agent (the "Sale and Servicing Agreement"). The Sale and Servicing Agreement provided for the purchase by Credit III of certain loans and warrants which were pledged as collateral under the Fortress Facility.

On June 17, 2014, the Company issued a press release announcing the prepayment and termination of the Fortress Facility, a copy of which is attached hereto as Exhibit 99.1 and is incorporated into this Current Report on Form 8-K by reference.


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Source: Edgar Glimpses


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