- Closed Commitments to Date for Q3
2014 Total Approximately $147.0 Million
- Six Hercules Portfolio Companies
File IPO Registrations
- Three Portfolio Companies Achieve
Liquidity through Announced or Completed M&A Events
Hercules Technology Growth Capital, Inc. (NYSE: HTGC), the
largest specialty finance company focused on providing senior
secured loans to venture capital-backed companies in
technology-related markets, including technology, biotechnology,
life science, and energy & renewable technology industries, at
all stages of development, today announced its Q3 2014 portfolio
update.
“The strong origination activity in the third quarter puts
Hercules on track to achieve annual new commitments of
approximately $700-$850 million for 2014, subject to market
conditions,” said Manuel A. Henriquez, chairman and chief executive
officer of Hercules. “This growth is fueled by our strong
reputation and brand recognition coupled with our ability to work
in concert with entrepreneurs and their venture capital sponsors by
providing creative and flexible financing solutions.
“The high quality of our investment portfolio of innovative
top-tier-backed venture capital companies is also borne out by the
number of liquidity events, including IPOs and M&A events, we
are seeing through the third quarter of 2014,” Henriquez continued.
“This is a clear testament to the team’s ability to identify, and
then work closely with, some of the most promising companies in the
technology-related sectors we cover.”
New Originations for Q3 2014:
As of September 29, 2014, Hercules has originated
approximately $147.0 million of debt commitments to new and
existing portfolio companies.
Hercules has made new commitments to the following eight
companies, assisting in their future growth and development.
- $26.0 million commitment to a
clinical-stage biotechnology company focused on gene therapy for
the treatment of heart failure.
- $20.0 million commitment to an
advertising-technology company specializing in mobile advertising
monetization.
- $20.0 million commitment to a
leading provider of Smart Organization Systems for the small
business and home markets.
- $18.5 million commitment to a
leader in cloud and mobile testing and real user monitoring.
- $12.5 million commitment to an
ophthalmic medical device and pharmaceutical company advancing the
science of corneal collagen cross-linking and refractive
correction.
- $10.0 million commitment to a
clinical-stage biotechnology company developing novel,
hospital-based therapies for the management of acute,
life-threatening neurological conditions.
- $8.5 million commitment to a
biopharmaceutical company developing innovative treatments for
nervous system disorders.
- $150 thousand commitment to a
mobile content delivery and sales enablement technology
company.
In addition, Hercules provided approximately $31.3 million of
debt and equity commitments and renewals to existing portfolio
companies.
It is important to note that certain commitments may expire
without being drawn upon, and commitments do not necessarily
represent future cash requirements or future earning assets for
Hercules. Our commitments may include conditions, such as reaching
certain milestones, before the Hercules debt commitment would
become available. Hercules is instituting more funding or
performance-based milestone requirements to mitigate risk which
will affect our actual funding levels.
Principal Repayments:
Hercules continued its previously announced efforts to
selectively prune and rebalance its investment portfolio. As of
September 29, 2014, Hercules received approximately $114.2
million in principal repayments, of which
approximately $82.2 million were unscheduled, early
repayments.
Portfolio Company Liquidity Events for Q3 2014:
- In July 2014, Hercules’ portfolio
company Transcept Pharmaceuticals, Inc. (Nasdaq:
TSPT) and Hercules’ portfolio company Paratek
Pharmaceuticals, Inc. entered into a definitive merger
agreement under which the stockholders of Paratek will become the
majority owners of Transcept and the operations of Transcept and
Paratek will be combined.
- In August 2014, Roper Industries
Inc. (NYSE: ROP) acquired Hercules’ portfolio company IPA,
LLC. This liquidity event represents a net gain of
approximately $1.5 million, an internal rate of return of
approximately 18.5% (excluding proceeds in escrow), and a gross
multiple of approximately 3.0x on Hercules total investment in this
portfolio company.
- In September 2014, AVG Technologies
(NYSE: AVG) announced that it had entered into a definitive
agreement to acquire Hercules’ portfolio company Location
Labs. Under the terms of the agreement, AVG will pay
approximately $140 million initially, plus up to an additional
approximately $80 million in cash consideration over the next two
years based on the achievement of certain performance metrics and
milestones.
Current Companies in IPO Registration:
As of September 29, 2014, Hercules had warrant and equity
positions in six (6) portfolio companies that had filed
Registration Statements in contemplation of a potential IPO:
- Box, Inc.
- Dance Biopharm, Inc.
- Good Technology
- Zosano Pharma, Inc.
- Two companies filed confidentially
under the Jobs Act
There can be no assurances that these companies will complete
their IPOs in a timely manner or at all.
About Hercules Technology Growth Capital, Inc.:
Hercules Technology Growth Capital, Inc. (NYSE: HTGC)
("Hercules") is 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 energy & renewable technology industries, at
all stages of development. Since inception (December 2003),
Hercules has committed more than $4.4 billion to over 290 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 three outstanding bond issuances of
7.00% Senior Notes due April 2019, 7.00% Senior Notes due September
2019, and 6.25% Notes due July 2024, which trade on the NYSE under
the symbols "HTGZ", "HTGY," and "HTGX," respectively.
Companies interested in learning more about financing
opportunities should contact info@htgc.com, or call
650.289.3060.
Forward-Looking Statements:
Statements in this press release may constitute forward-looking
statements for purposes of the safe harbor protection under
applicable securities laws. Forward-looking statements can be
identified by terminology such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “intend,” “is planned,” “may,” “should,”
“will,” “will enable,” “would be expected,” “look forward,” “may
provide,” “would” or similar terms, variations of such terms or the
negative of those terms. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors including,
without limitation, those risks, uncertainties and factors referred
to in the “Risk Factors” section of the Hercules Annual Report on
Form 10-K for the year ended December 31, 2013, as well as the
other documents and reports filed by Hercules with the Securities
Exchange Commission. As a result of such risks, uncertainties and
factors, actual results may differ materially from any future
results, performance or achievements discussed in or implied by the
forward-looking statements contained herein. Hercules is providing
the information in this press release as of this date and assumes
no obligations to update the information included in this press
release or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Hercules Technology Growth Capital, Inc.Main, 650-289-3060
HT-HNinfo@htgc.comorMarket Street PartnersEd Keaney,
415-445-3238ekeaney@marketstreetpartners.com
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