67 WALL STREET, New York - December 17, 2013 - The Wall Street Transcript has just published its Business Development Companies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: BDC Risk/Reward Profile - Business Development Companies Historical Overview - Yield Compression Issues - Internally and Externally Managed BDCs - BDC Dividend Growth
Companies include: Horizon Technology Finance Corporation (HRZN) and many more.
In the following excerpt from the Business Development Companies Report, senior management at Horizon Technology Finance Corporation (HRZN) discusses company strategy and the outlook for this vital industry:
TWST: How would Horizon be impacted by a rising interest rate environment?
Mr. Mathieu: We have made important strides throughout 2013 in not only reducing our exposure to potentially higher interest rates but lowering our overall borrowing costs as well. By recently completing our first investment-grade term securitization and partnering with Key Equipment Finance to amend and renew our revolving credit facility, we have enhanced our ability to leverage both first and second lien loans at more favorable rates and increased our future earnings potential. At the end of the third quarter, 92% of Horizon's total borrowings were secured at fixed rates with approximately 68% of total borrowings locked away at a favorable interest rate of 3.0%.
TWST: What are you seeing in the regulatory environment?
Mr. Mathieu: From a regulatory perspective, we are a business development company, which provides significant tax advantages since we're considered a pass-through entity and are not required to pay corporate income tax.
Right now in the U.S. Congress there is a new bill under consideration that focuses on increasing the capital availability for BDCs. We believe this proposed bill, if passed into law at some point in 2014, would have a positive impact on our business by, among other things, allowing for higher levels of leverage and increasing the potential for higher returns.
TWST: You recently reported financial results for the third quarter of 2013. How did your company do?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.