Monroe Capital Corporation + Horizon Technology: Reaction To Sweetened Merger Offer

Not Enough?

INTRODUCTION

Yesterday, the BDC Reporter wrote about the sudden, late-in-the-day offer to the shareholders of Monroe Capital Corporation (MRCC) and Horizon Technology Finance (HRZN) to improve the terms associated with the long-planned merger of the two BDCs. Today, as part of our continuing coverage, we’ll have a look at how shareholders in both BDCs reacted to the kind offer.

Monroe Capital

As of Friday, March 6, 2026 - before the new offer was revealed - MRCC traded at a price of $4.24 a share. That was a discount of (45%) to the BDC’s net asset value per share.

After being offered an additional $0.75 per share at closing and up to $0.08 per share of incremental dividends following the merger at HRZN, the price closed at $4.78 on Tuesday. That’s a $0.54 per share increase, or 13%, but less than the promised improvement in the offer. 

The BDC’s price ended up at a discount of (38%).

Trading volume was higher than usual, but not huge.

Horizon Technology Finance

On Friday, HRZN’s price was at $4.20. This was a discount to its NAVPS of (40%).

After the offer of - potentially - $0.08 per share in new supplemental dividends over two quarters - subject to a variety of caveats - the price moved on Tuesday to $4.26 a share and has fallen back to $4.2250 as we write this near the close on Wednesday.

Stock trading volumes, which have been all over the place of late, did not change all that much.

UPDATE

Bulldog Investors has not updated its public stance on the Monroe Capital–Horizon Technology Finance merger since its March 6 letter urging MRCC’s board to reconsider or improve the deal terms. As of press time, all subsequent merger‑related disclosures and news flow continue to reference that March 6 communication without any new Bulldog statements.

VIEWS

The market response to the MRCC offer was relatively favorable, while HRZN’s was tepid. 

What we can’t tell is whether the shareholders of either BDC will be voting in favor of the combination, or not. 

This is a story very much in progress.