- Record Q4 2014 new origination
commitments of approximately $316.0 million
- 2014 year-to-date new origination
commitments of approximately $900.0 million surpasses 2013
commitments of $705.0 million - a 28% increase
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 energy & renewable technology, at all stages
of development, today announced its Q4 2014 portfolio update.
“Hercules completes an impressive sprint to the finish line
delivering another record quarter and year of new originations
commitments, underscoring our leadership position and value we
bring to both our innovative venture growth stage companies and to
the venture capital community as a thriving alternative source of
growth capital versus traditional commercial bank financing, while
also demonstrating our continued focus on growing our market
presence,” stated Manuel Henriquez, chairman and chief executive
officer of Hercules. “This achievement would not have been possible
if not for our amazing, dedicated team of investment professionals
and our unquestionable brand recognition and industry reputation as
the lender of choice to many of the leading venture capital backed
pre-IPO and M&A companies seeking growth capital. Our
eleven-year track record, coupled with our outstanding venture
capital relationships, and what I consider to be the
industry-leading direct originations platform, continue to afford
us access to deal flow for new originations at unprecedented
levels, far greater than any of our BDC competitors.”
Henriquez added, “We are never satisfied with the status quo. We
are committed to continuously improving how we operate and provide
growth capital solutions to the community of innovative
venture-backed growth stage companies we service and will continue
to elevate our differentiated competitive advantage, so that we can
create even better solutions for our current and future partners
while delivering potentially greater shareholder return. We are
extremely thankful that over 300 companies have chosen to select
Hercules as their partner for growth capital, representing nearly
$5 billion in capital commitments since our founding in December
2003.”
New Originations for Q4 2014 Totaling Approximately $316.0
million:
As of December 23, 2014, Hercules has originated
approximately $316.0 million of debt and equity commitments to new
and existing portfolio companies.
Ten (10) new commitments to the following venture growth
stage companies:
Technology Portfolio - $138.0
Million
- $60.0 million to a mobile
advertising-technology company developing consumer engagement
platforms
- $38.0 million to online marketplace
company servicing the heavy industries marketplace
- $25.0 million to the leading technology
developer of cloud contact center solutions
- $15.0 million to a leading technology
provider of enterprise email marketing solutions
Life Sciences Portfolio - $150.0
Million
- $40.0 million to a clinical-stage
biopharmaceutical company developing infectious diseases
treatments
- $30.0 million to a leading
pharmaceutical company developing therapies for drug-resistant
infections
- $29.0 million to a leading
biopharmaceutical company developing directed vaccines and
immunotherapies
- $20.0 million to a leading medical
device company developing cardiac disease management
technology
- $18.5 million a medical device company
developing advanced implantable drug delivery systems
- $12.5 million to a leading company
developing safer and more efficient drug delivery infusion
solutions
In addition, Hercules provided approximately $28.0 million of
debt commitments and renewals to existing portfolio companies.
Record Level Principal Repayments/Early Pay-Offs:
As of December 23, 2014, Hercules received
approximately $177.8 million in principal repayments for
Q4 2014, of which approximately $146.5 million were
unscheduled early repayments.
Year-to-date, Hercules received approximately $494.5 million in
principal repayments, of which approximately $357.8 million were
unscheduled early repayments.
Portfolio M&A and IPO Activities in Q4 2014:
M&A Activities
- Eight (8) Portfolio Company
Completed M&A Events for Q4 2014:
1. In October 2014, Premiere Global Services,
Inc. (NYSE: PGI) completed its acquisition of Hercules’ portfolio
company Central Desktop. Financial terms were not
disclosed.
2. In October 2014, Breg, Inc. and Hercules’
portfolio company United Orthopedic Group, Inc. announced
they had merged. United Orthopedic will operate as a wholly-owned
subsidiary of Breg, Inc. Financial terms were not disclosed.
3. In October 2014, InterCloud Systems, Inc.
(Nasdaq: ICLD) completed its acquisition of Hercules’ portfolio
company VaultLogix, LLC. The transaction consists of $16
million in cash and $12.75 million in restricted common stock, of
which $11.5 million was valued at $16.50 per share, with the
balance valued at market price, and $15.5 million in three year
convertible seller notes, convertible at a fixed price of $6.37 per
share
4. In October 2014, AVG Technologies (NYSE:
AVG) completed its acquisition of Hercules’ portfolio company
Location Labs. 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.
5. In October 2014, Hercules’ portfolio
company Transcept Pharmaceuticals, Inc. completed its merger
with Hercules’ portfolio company Paratek Pharmaceuticals,
Inc. (Nasdaq: PRTK) in an all-stock transaction. Immediately
prior to the merger, Paratek received gross proceeds of $93 million
from a combination of current and new investors.
6. In October 2014, General Mills, Inc.
(NYSE: GIS) completed its acquisition of Hercules’ portfolio
company Annies, Inc. (NYSE: BNNY). General Mills purchased
all issued and outstanding shares of common stock of Annies, Inc.
at a price of $46.00 per share. Hercules no longer holds
investments in the company.
7. In October 2014 and November 2014
respectively, Mavenir Systems (NYSE: MVNR) announced and completed
its acquisition of Hercules’ portfolio company Stoke, Inc.
Financial terms were not disclosed.
8. In November 2014, MegaChips Corporation
(Tokyo Stock Exchange: 6875) completed its $200 million cash
acquisition of Hercules’ portfolio company SiTime
Corporation.
IPO Activities
- Seven (7) Portfolio Companies
Currently in IPO Registration:
As of December 23, 2014, Hercules had warrant and equity
positions in seven portfolio companies that had filed Registration
Statements in contemplation of a potential IPO:
- Box, Inc.
- Good Technology
- Zosano Pharma, Inc.
- Inotek Pharmaceuticals, Inc.
- Three companies filed confidentially
under the Jobs Act
Two (2) Completed IPO Liquidity Events:
- In October 2014, a former Hercules
portfolio company Zayo Group Holdings, Inc. (NYSE: ZAYO)
completed its initial public offering of 24,079,002 shares of its
common stock at a price to the public of $19.00 per share. Hercules
currently holds no investments in the company.
- In December 2014, Hercules’ portfolio
company Neothetics, Inc. completed its initial public
offering of 4,650,000 shares of its common stock at a price to the
public of $14.00 per share.
About Hercules Technology Growth Capital, Inc.
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) 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, at all stages
of development. Since inception (December 2003), Hercules has
committed more than $4.6 billion to over 300 companies and is the
lender of choice for entrepreneurs and venture capital firms
seeking growth capital financing. Companies interested in learning
more about financing opportunities should contact info@htgc.com, or
call 650.289.3060.
Hercules’ common stock trades on the New York Stock Exchange
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.
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.Michael Hara,
650-433-5578Investor Relations and Corporate
Communicationsmhara@htgc.comorMarket Street PartnersEd Keaney,
415-445-3238ekeaney@marketstreetpartners.com
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