Monroe Capital, Horizon Technology enter into definitive merger pact

Monroe Capital LLC announced that Monroe Capital Corporation (MRCC) and Horizon Technology Finance Corporation (HRZN), both business development companies managed by affiliates of Monroe Capital, have entered into an agreement under which MRCC would merge with and into HRZN, subject to the receipt of certain shareholder approvals and the satisfaction of other closing conditions. Pursuant to the Merger Agreement, HRZN will be the surviving public entity and will continue to be managed by Horizon Technology Finance Management LLC and trade on the NASDAQ under the symbol “HRZN”. Monroe Capital Income Plus Corporation (“MCIP”), the Monroe Capital platform’s privately offered BDC, has agreed that, immediately prior to the Merger, it will acquire substantially all of the assets of MRCC at fair value, as determined shortly before closing, for cash (the “Asset Sale”), subject to the satisfaction or waiver of the closing conditions in the Merger Agreement and certain other closing conditions applicable to the Asset Sale. Following the Asset Sale, MRCC’s only assets will be the net cash proceeds from the sale after giving effect to the receipt of proceeds from the Asset Sale, repayment of liabilities, transaction costs and distribution of undistributed net investment income. Pursuant to the Merger Agreement, MRCC will subsequently merge with HRZN. Under the terms of the Merger Agreement, in connection with the merger of MRCC into HRZN, MRCC shareholders will receive newly issued shares of HRZN common stock based on the ratio (the “Exchange Ratio”) of the MRCC NAV per share divided by the HRZN NAV per share, each determined shortly before closing. The Exchange Ratio is subject to adjustment only in the event of a reclassification or recapitalization of shares or similar transaction by either MRCC or HRZN.