Horizon Technology Finance Corporation (HRZN) completed a $30 million senior secured term loan with autonomous‑driving specialist Kodiak AI, Inc., drawing the full amount at closing on December 31 2025.
The loan carries a prime‑plus 3.50% rate with a 6.50% floor. Interest‑only payments run from February 1 2026 to July 1 2028, after which principal amortization begins on August 1 2028 and continues in 18 equal monthly installments through the maturity date of January 1 2030. The terms represent a 200‑basis‑point reduction from Kodiak’s prior 2022 facility and an extended maturity, reflecting lender confidence in the company’s growth prospects and its ability to service debt over a longer horizon.
Kodiak AI will use the proceeds to repay its existing debt with HRZN, fund working capital, and support general corporate purposes. The refinancing reduces short‑term debt obligations and extends the company’s financial runway, enabling continued investment in autonomous‑trucking technology and scaling operations.
HRZN’s Q3 2025 earnings beat expectations, with net investment income of $0.32 per share—matching the prior‑year figure—while the portfolio yield stood at 18.6%. The new loan underscores HRZN’s strategy of providing non‑dilutive capital to high‑growth tech firms and demonstrates its capacity to secure larger deals, complementing its recent $57.5 million note issuance and the planned merger with Monroe Capital.
Kodiak AI, a leader in AI‑powered autonomous trucking, last raised $125 million in a Series B round in November 2021. The new facility replaces a 2022 loan, offering lower interest costs and a longer maturity that support the company’s R&D and deployment plans. CEO Don Burnette said the favorable terms will allow Kodiak to achieve key objectives for the company and its shareholders.
The transaction highlights HRZN’s role as a specialist venture‑debt provider and Kodiak AI’s continued expansion in the autonomous‑trucking market, positioning both companies for sustained growth in a competitive technology landscape.
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