** Specialty finance firm Monroe Capital Corp's MRCC.O shares jump 11.7% to $6.97 premarket

** MRCC announced late on Thursday it will merge with Horizon Technology Finance HRZN.O, another business development company under Monroe Capital umbrella

** HRZN and MRCC are both affiliates of asset management firm Monroe Capital

** MRCC shareholders will receive HRZN shares equivalent to the net asset value of MRCC shares

** Raymond James analyst Robert Dodd says the transaction could be value creating for MRCC shareholders given HRZN trades at a materially higher price-to-net asset value (P/NAV) valuation than MRCC

** As of last close, MRCC stock down 26.6% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com))