Horizon/Monroe merger closed

Horizon Technology Finance closed its merger with Monroe Capital Corporation on April 14, leaving Horizon as the surviving public company. (finance.yahoo.com) The combined company said it will have about $471.7 million in pro forma net assets immediately after closing, including about $141.1 million in cash from the transaction. Horizon said it plans to use that cash to repay part of its debt and fund new investments. (finance.yahoo.com) Horizon issued 20,370,693 shares to Monroe Capital Corporation stockholders, or 0.9402 Horizon shares for each Monroe share, with cash paid instead of fractional shares. Former Monroe holders are expected to own 29.86% of the combined company, while legacy Horizon holders will own 70.14%. (finance.yahoo.com) Both companies are business development companies, a structure that lends to smaller companies and passes most income through to shareholders. Horizon focuses on secured venture loans to companies in technology, life science, healthcare information and services, and sustainability. (stocklight.com) The deal was designed around a two-step cleanup of Monroe Capital Corporation before the merger. Monroe shareholders approved the sale of substantially all of Monroe’s assets to Monroe Capital Income Plus Corporation for cash, then approved the merger into Horizon at special meetings held on March 13. (sec.gov) That asset sale changed the economics of the transaction. When the companies announced the merger agreement on August 7, 2025, they said Monroe shareholders were expected to own about 37% of the combined company in a net-asset-value-for-net-asset-value share exchange; after closing, their stake came in lower at 29.86%. (nasdaq.com, finance.yahoo.com) Shareholders had already signed off by wide margins. Horizon said more than 83% of voting shareholders backed the share issuance, and Monroe said more than 88% backed both the merger and the related asset sale. (sec.gov) The merger also folds Monroe more tightly into the Monroe Capital platform that already managed both vehicles through affiliates. Horizon will continue to be externally managed by Horizon Technology Finance Management LLC, and Monroe Capital Chief Executive Officer Theodore Koenig said the firm expects to use the combination to expand lending in venture debt and small-cap public company growth markets. (finance.yahoo.com) The closing came one day after Monroe Capital Corporation set a final distribution of $0.60 per share, contingent on the asset sale and merger closing. Horizon, for its part, had already declared monthly distributions of $0.06 per share for April, May and June 2026. (markets.financialcontent.com, ir.horizontechfinance.com) For Horizon, the merger closes a deal announced in August 2025 and turns it into a larger lender with more cash, more shares outstanding and the same Nasdaq ticker: HRZN. (nasdaq.com, finance.yahoo.com)