Monroe Capital Increases Special Distribution Amount by $13M

Monroe Capital Corporation announced its intent to increase the amount of its final special distribution payable to legacy MRCC stockholders of record as of a time prior to the closing of its previously announced merger with Horizon Technology Finance Corporation by $13M, contingent upon MRCC stockholder approval of the Merger and related closing conditions. As previously announced, following the Merger, HRZN will be the surviving public entity and will continue to be managed by Horizon Technology Finance Management and trade on the NASDAQ under the symbol "HRZN". In addition, to create near-term value for the combined company stockholders, including MRCC legacy stockholders, HRZN's Board of Directors has announced its intent to use HRZN's current undistributed taxable earnings of $27.6M as of December 31, 2025 to supplement HRZN's regular monthly distributions to the combined company's stockholders for two quarters following the closing of the Merger subject to the closing of the Merger and the HRZN Board's declaration of the distributions. HRZN anticipates that the HRZN Supplemental Distributions for the first quarter post-closing will be in the range of at least $0.02 to $0.04 per share per month. In its consideration of declaration of any HRZN Supplemental Distributions, the HRZN Board will consider, among other things, HRZN's ongoing compliance with asset coverage ratio requirements under the Investment Company Act of 1940, HRZN's compliance with applicable financial and other operating covenants under HRZN's financing agreements, and HRZN's general investment performance and available liquidity, as well as general market conditions at the time. In addition to MRCC's planned pre-Merger closing distribution to MRCC stockholders of MRCC's undistributed taxable earnings, which totaled $2.9 million as of December 31, 2025, MRCC intends to pay to legacy MRCC stockholders a one-time cash distribution of $13.0 million following MRCC's sale for cash of substantially all of its assets to Monroe Capital Income Plus Corporation, the Monroe Capital platform's privately offered business development company. The Pre-Merger Closing Distribution is expected to be approximately $15.9 million in total. The Pre-Merger Closing Distribution will be sourced from the net proceeds received by MRCC from MCIP in the pre-Merger asset sale, which will occur immediately prior to the Merger pending requisite stockholder approval and completion of other closing conditions. The Pre-Merger Closing Distribution will be payable to MRCC stockholders of record as of a time prior to effectiveness of the Merger. Payment of the Pre-Merger Closing Distribution is contingent upon the closing conditions set forth in the definitive agreement relating to the asset sale and merger, including receipt of MRCC stockholder approval of the MRCC proposals relating to the transactions to be voted on at MRCC's special meeting of stockholders currently scheduled for March 13, 2026 and receipt of HRZN stockholder approval of the HRZN proposals relating to the transactions to be voted on at HRZN's special meeting of stockholders currently scheduled for March 13, 2026, each as described in MRCC and HRZN's joint proxy statement/prospectus.