MRCC Mergers

Monroe Capital Corporation and Horizon Technology Finance Corporation Enter into Definitive Merger Agreement

Published August 07, 2025 at 08:05 PM

CHICAGO--(BUSINESS WIRE)--Monroe Capital LLC (“Monroe Capital”) today announced that Monroe Capital Corporation (“MRCC”; NASDAQ: MRCC) and Horizon Technology Finance Corporation (“HRZN”; NASDAQ: HRZN), both business development companies (“BDCs”) managed by affiliates of Monroe Capital, have entered into an agreement (the “Merger Agreement”) under which MRCC would merge with and into HRZN (the “Merger”), subject to the receipt of certain shareholder approvals and the satisfaction of other closi

Related Questions

What is the expected impact of the merger on MRCC and HRZN share prices in the short term? How does the merger structure (e.g., exchange ratio, cash consideration) compare to recent BDC consolidations in the sector? How might the merger influence the companies' leverage ratios and compliance with BDC regulatory requirements? What are the potential risks, such as integration challenges or market perception, that could affect the merged entity's performance? Will the merger create synergies that could improve the combined BDC's credit quality and asset yields? How will the merger affect the combined company's earnings per share (EPS) and dividend yield? Are there any lock‑up periods or secondary offering plans that could affect liquidity post‑merger? What regulatory approvals are required, and what is the timeline for closing the transaction? What are the valuation multiples (e.g., P/E, EV/EBITDA) of the merged entity compared to its historical averages and peers? What is the projected impact on the merged BDC's net asset value (NAV) and portfolio composition?