Horizon Technology Finance Corporation, a leading specialty finance company that provides secured loans to venture capital and private equity backed development-stage companies in the technology, life science, healthcare information and services, and clean-tech industries, announced that it has renewed and amended its revolving credit facility previously administered by Wells Fargo Capital Finance ("Wells Fargo") and facilitated the assignment of all rights and obligations of Wells Fargo under the Credit Facility to Key Equipment Finance, Inc. ("Key").

The credit facility, as amended, provides the company's wholly owned subsidiary, Horizon Credit II LLC, with a $50 million commitment from Key and contains an "accordion" feature allowing additional lenders to make commitments under the Credit Facility up to an aggregate commitment of $150 million. There can be no assurance that additional lenders will make any commitments under the Credit Facility.

Effective November 4, 2013, the credit facility will have a LIBOR floor of 0.75%, compared to a previous LIBOR floor of 1.00%. The stated interest rate under the credit facility is one-month LIBOR plus 3.25%, for a current interest rate applied on outstanding balances of 4.00%, as compared to a previous interest rate of 4.25%. The amended Credit Facility has a three-year draw period beginning November 4, 2013 followed by a two-year term out option. The Company may borrow under the Credit Facility at an advance rate of 50% against eligible loans. The Credit Facility, as amended, now allows the Company to borrow against a higher percentage of eligible loans secured by a second lien.

Horizon intends to use the facility to leverage its existing investments, as well as deploy additional capital for new investments. The amended facility with Key complements the company's existing term loan credit facility.

"We are pleased with the significantly improved terms of our revolving credit facility," said Christopher M. Mathieu, Senior Vice President and Chief Financial Officer. "Our new relationship with Key Equipment Finance provides Horizon with more favorable asset eligibility, a reduction in the credit facility interest rate, and an extension in the remaining revolving period by more than two years. With Key's new commitment, we have obtained improvements in our borrowing capacity which we expect will drive net investment income as we utilize the facility."

"We are excited to partner with one of the leading venture lenders in the market. With Key Equipment Finance's strong financial backing combined with the substantial market expertise of the Horizon team, this facility considerably enhances Horizon's future prospects," said Rian W. Emmett, managing director of Key Equipment Finance. "We pride ourselves on partnering with distinguished market leaders such as Horizon and look forward to a mutually rewarding relationship for years to come."

Horizon Technology Finance Corporation is a business development company that provides secured loans to development-stage companies backed by established venture capital and private equity firms within the technology, life science, healthcare information and services, and clean-tech industries.