Horizon Finance (HRZN) investor relations material

Executive summary

• Announced merger between Horizon Technology Finance Corporation and Monroe Capital Corporation, creating a larger, well-capitalized venture debt platform with enhanced scale and operational efficiencies.

• The transaction is structured as a two-step process: MRCC sells its portfolio to MCIP, then merges with Horizon via a NAV-for-NAV share exchange.

• MRCC shareholders receive a 33% NAV premium to trading price and a tax-free HRZN share exchange, unlocking immediate and long-term value.

• The combined company will have an estimated NAV of $446 million and receive a $165 million equity infusion.

• The transaction is expected to close in December 2025, pending regulatory and shareholder approvals.

Financial highlights

• MRCC shareholders will realize a 33% premium to MRCC's share price as of 08/05/2025, based on preliminary 06/30/2025 NAV.

• The merger will add $165 million in equity to Horizon, increasing its estimated NAV to $446 million.

• G&A expense savings of $2.5 million are expected, a 30% reduction from the combined standalone levels.

• MRCC shareholders expected to own approximately 37% of the combined company post-merger.

• Advisory fee waivers up to $4 million over the first four quarters post-closing will support net investment income.

Outlook and guidance

• Management expects rapid deployment of new capital, aiming for EPS neutrality in the first year post-merger.

• The merger is anticipated to enable larger deal sizes and greater access to lower-cost financing.

• Focus remains on efficient, prudent capital deployment and scaling origination capabilities.

• Transaction expected to be neutral to core net investment income in year one and accretive over time due to operational savings and portfolio optimization.

• Board declared monthly distributions of $0.11 per share for July, August, and September 2025.