Monroe Capital Corporation announced on August 7, 2025, a definitive merger agreement with Horizon Technology Finance Corporation (HRZN). This transaction represents a strategic exit from MRCC's standalone Business Development Company (BDC) operations.
Immediately preceding the merger, Monroe Capital Income Plus Corporation (MCIP) will acquire MRCC's investment assets at fair value for cash through an asset purchase agreement. Following this asset sale, MRCC will merge with HRZN, with HRZN continuing as the surviving entity.
These series of transactions are anticipated to close in the fourth quarter of 2025. The successful execution and valuation of this merger are now the fundamental drivers for MRCC's investment thesis.
Investors are directed to focus on the terms of the exchange ratio, HRZN's future performance, and the potential for a smooth transition, rather than MRCC's standalone operational metrics. This strategic pivot fundamentally reshapes the company's future direction.
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