Horizon Technology Finance Corp. has proposed an underwritten primary offering of 2 million of its common shares.

The company expects to grant the underwriters an option to purchase up to an additional 300,000 of its common shares.

Based on the company's closing price of $12.51 per share on March 21 and including overallotments, S&P Global Market Intelligence calculates an aggregate offering size of about $28.8 million.

Horizon Technology expects to use the net proceeds to repay outstanding debt borrowed under its revolving credit facility provided by KeyBank NA. However, through reborrowing of the initial repayments under its the credit facility, the company intends to use the net proceeds to make investments, to pay operating expenses and other cash obligations and for general corporate purposes.

The joint-lead book-running managers for the offering are Morgan Stanley & Co. LLC, UBS Securities LLC, and Janney Montgomery Scott LLC.