Hercules Technology Growth Capital Enhances and Amends Wells Fargo Credit Facility
03 August 2012 - 3:48AM
Business Wire
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (the
“Company”) today announced that effective August 1, 2012, it
enhanced and amended its credit facility with Wells Fargo
Capital Finance (“WFCF”), part of Wells Fargo & Company (NYSE:
WFC), under which WFCF has committed $75.0 million in initial
credit capacity under a $300.0 million accordion credit
facility. The amendment reduces the interest rate floor by 75 basis
points to 4.25% and extends the maturity date by one year to August
2015. Additionally, an amortization period of 12 months was added
to pay down the principal balance as of the maturity date.
"We are pleased to improve the terms on this facility and
appreciate the continued support demonstrated by this leading
financial institution," said Manuel A. Henriquez, co-founder,
chairman and chief executive officer of Hercules. "The amended
facility provides Hercules with an increased level of financial
flexibility to execute our disciplined growth strategy.”
Borrowings under the amended facility are at an interest rate
per annum equal to LIBOR plus 3.50%, consistent with prior
facilities while the floor has been lowered to 4.25%, a 75 basis
point reduction from the prior facility. The advance rate of 50%
against eligible loans remains the same.
The facility also contains an accordion feature, in which the
Company can increase the credit line up to an aggregate
of $300.0 million, funded by additional lenders who may join
the facility and with the agreement of WFCF and RBC Capital Markets
and subject to other customary conditions. There can be no
assurances that additional lenders will join the new credit
facility.
For additional information, please review the company’s current
report on Form 8-K, to be filed with the Security and Exchange
Commission which will include the completed transaction
documents.
About Hercules Technology Growth Capital, Inc.:
Hercules Technology Growth Capital (NYSE: HTGC), is a New
York Stock Exchange-traded specialty finance firm providing
customized loans to public and private technology-related
companies, including clean technology, life science and select
lower middle market technology companies at all stages of
development. Hercules common stock trades on the New York
Stock Exchange (“NYSE”) under the trading symbol "HTGC”.
In addition, the Company's 7.00% Senior Notes due 2019 trade on
the NYSE under the trading symbol "HTGZ”.
Companies interested in learning more about financing
opportunities should contact info@htgc.com, or call
650.289.3060.
About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain
asset-based lending, accounts receivable and purchase order finance
services of Wells Fargo & Company and its subsidiaries, and
provides traditional asset-based lending, specialized senior
secured financing, accounts receivable financing, purchase order
financing and channel finance to companies across the United States
and internationally. Dedicated teams within Wells Fargo Capital
Finance provide financing solutions for companies in specific
industries such as retail, software publishing and high-technology,
commercial finance, staffing, government contracting and others.
For more information, visit wellsfargocapitalfinance.com.
Forward-Looking Statements:
The statements contained in this release that are not purely
historical are forward-looking statements. These forward-looking
statements are not guarantees of future performance and are subject
to uncertainties and other factors that could cause actual results
to differ materially from those expressed in the forward-looking
statements including, without limitation, the risks, uncertainties,
including the uncertainties surrounding the current market, and
other factors we identify from time to time in our filings with the
Securities and Exchange Commission. Although we believe that the
assumptions on which these forward-looking statements are based are
reasonable, any of those assumptions could prove to be inaccurate
and, as a result, the forward-looking statements based on those
assumptions also could be incorrect. You should not place undue
reliance on these forward-looking statements. The forward-looking
statements contained in this release are made as of the date
hereof, and Hercules assumes no obligation to update the
forward-looking statements for subsequent events.
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