Hercules Technology Growth Capital, Inc. (NYSE: HTGC), the
leading specialty finance company focused on providing senior
secured loans to venture capital-backed companies in
technology-related markets, including technology, biotechnology,
life science and cleantech industries, at all stages of development
today announced its Q3 2012 portfolio update. This portfolio update
follows the interim Q3 quarter-to-date update issued on September
11, 2012.
“Against a backdrop of continued strong demand for venture debt
during the third quarter, Hercules originated a number of new debt
commitments to innovative portfolio companies, the vast majority of
which were late in the quarter (September), despite continued
global economic uncertainty and the upcoming U.S. elections,” said
Manuel A. Henriquez, Hercules co-founder, chairman and chief
executive officer. “In addition, we took significant steps to
bolster and strengthen our balance sheet, adding well over $100
million in additional liquidity through a diversified mix of senior
note and equity offerings, which will support portfolio growth for
the fourth quarter of 2012 and beyond.”
Additional New Originations for Q3:
During the third quarter of 2012, Hercules originated
approximately $136.0 million of debt and equity commitments to new
and existing portfolio companies. As previously announced, Hercules
had originated commitments of more than $93.0 million to
new and existing portfolio companies from July 1, 2012 to September
11, 2012.
New third quarter investment commitments, completed since
September 11, 2012 include:
- $25.0 million commitment to
Lanx, a privately held medical device company focused on
developing and commercializing innovative devices for spinal
surgery.
- $10.0 million commitment to US
HIFU, a privately held healthcare company and a world leader in
minimally invasive, high-intensity focused ultrasound (HIFU)
technologies.
- $3.0 million commitment to
JackBe, a leading provider of Real-Time Operational
Intelligence software, a new emerging segment of Business
Intelligence.
In addition, during this period, Hercules provided $5.4 million
in commitments to existing portfolio companies. Together with the
previously announced commitments to existing portfolio companies of
approximately $25.0 million from July 1, 2012 to September 11,
2012, Hercules provided a total of approximately $30.4 million in
commitments to existing portfolio companies as of September 30,
2012.
Signed Term Sheets - Additional Future Portfolio Growth
Potential:
As of September 30, 2012, Hercules has approximately $133.5
million of signed non-binding term sheets subject to completion of
definitive documentation with prospective portfolio companies,
which generally convert to contractual commitments within
approximately 45 to 60 days. Non-binding term sheets are subject to
completion of Hercules' due diligence, investment committee
approval, legal review and negotiation of definitive documentation.
It is important to note not all signed, non-binding term sheets are
expected to close and do not necessarily represent any future cash
requirements or earning assets.
One Portfolio Company Completes IPO:
On September 20, 2012, portfolio company Trulia
completed its IPO and its shares are trading on the New York Stock
Exchange (NYSE) under the symbol “TRLA.”
Current Companies in IPO Registration and Existing Warrant
Portfolio:
As of September 30, 2012, Hercules had warrant positions in more
than 115 different technology, life science and cleantech
companies, and four portfolio companies had filed Form S-1
Registration Statements in contemplation of a potential IPO:
1. iWatt, Inc.
2. Glori Energy, Inc.
3. Paratek Pharmaceuticals, Inc.
4. One company filed a Form S-1 Registration Statement
confidentially under the JOBS Act.
There can be no assurances that these companies will complete
their IPOs in a timely manner or at all.
Capital Raising Activities:
During the quarter, Hercules closed a public offering of
approximately $85.0 million in aggregate principal amount of its
7.00 percent Senior Unsecured Notes due 2019. The September 2019
Notes trade on the New York Stock Exchange under the new trading
symbol “HTGY.”
On October 3, 2012, Hercules closed a public offering of 3.1
million shares of common stock at a price of $10.85 per share,
resulting in proceeds of approximately $33.6 million, excluding
other offering related expenses.
About Hercules Technology Growth Capital, Inc.:
Hercules Technology Growth Capital, Inc. (NYSE: HTGC)
(“Hercules”), is a leading specialty finance firm providing loans
to technology-related companies, including technology, life science
and cleantech industries at all stages of development. Since
inception (December 2003), Hercules has committed more than $3.0
billion to more than 210 companies and is the lender of choice for
entrepreneurs and venture capital firms seeking growth capital
financing.
Hercules’ common stock trades on the New York Stock Exchange
(NYSE) under the ticker symbol "HTGC."
In addition, Hercules has two outstanding bond issuances of 7.00
percent Senior Unsecured Notes due 2019, which trade on the NYSE
under the symbols “HTGZ” and “HTGY.”
Companies interested in learning more about financing
opportunities should contact info@htgc.com, or call
650.289.3060.
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
turbulence, 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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