UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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March 16, 2015
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Hercules Technology Growth
Capital, Inc.
(Exact
name of registrant as specified in its charter)
Maryland
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814-00702
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74-3113410
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(State or other jurisdiction
of incorporation)
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(Commission File No.)
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(I.R.S. Employer
Identification No.)
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400 Hamilton Ave., Suite 310
Palo Alto, CA
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94301
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's telephone number, including area code: (650) 289-3060
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Not Applicable
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(Former name or address, if changed since last report)
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Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On March 16, 2015, Hercules Technology Growth Capital, Inc. issued a
press release announcing its portfolio update for the quarter ending
March 31, 2015. The text of the press release is included as an exhibit
to this Form 8-K.
The information disclosed under this Item 2.02, including Exhibit 99.1
hereto, is being furnished and shall not be deemed “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934 and shall not be
deemed incorporated by reference into any filing made under the
Securities Act of 1933, except as expressly set forth by specific
reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release dated March 16, 2015
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
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March 16, 2015
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By:
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/s/ Jessica Baron
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Jessica Baron
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Chief Financial Officer
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EXHIBIT INDEX
Exhibit No.
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Description of Exhibits
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99.1
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Press Release dated March 16, 2015
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Exhibit 99.1
Hercules
Announces Interim Portfolio Update for Q1 2015
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Closed
Commitments to Date for Q1 2015 of Approximately $170.0 Million
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Surpasses
$5.0 Billion Milestone in Debt Commitments Since Inception (December
2003)
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Three
Completed IPO Liquidity Events During the Quarter
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Six
Hercules Portfolio Companies Currently in IPO Registration
PALO ALTO, Calif.--(BUSINESS WIRE)--March 16, 2015--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 industries, including technology,
biotechnology, life science, and energy & renewable technology, at all
stages of development, today announced its interim Q1 2015 portfolio
update.
“We are off to a strong start in 2015, with approximately $170.0 million
in new closed commitments and an equally strong pipeline rolling into Q2
2015, as we continue to drive towards realizing our goal of growing our
loan investment portfolio by as much as 30% to 50% in 2015, to our
year-end target of $1.3 to $1.5 billion, subject to market conditions,”
stated Manuel Henriquez, chairman and chief executive officer of
Hercules.
Henriquez added, “Our origination activity has been very robust as we
continue to see healthy deal flow from our venture capital partners and
from our innovative venture growth stage companies. However, we continue
to see many of these new investments opportunities closing later and
later in the quarter, thereby lowering our targeted intra-quarter
weighted average loan balances, and pushing out our EPS growth targets
by a quarter or two in the process. In addition, our forecasted early
pay-offs, or prepayments, are materially lower than prior quarters and
in-line with our expectations, which should allow us to grow our loan
investment portfolio and begin to leverage our SG&A infrastructure
investment in anticipation of higher year-end loan investment portfolio
growth and balances. Finally, we continue to selectively pursue new loan
investment opportunities that meet our credit underwriting standards, as
we look to systematically grow our loan investment portfolio to new
records levels in 2015 with senior secured high quality investments. We
remain steadfast in not trading-off increased credit risk in the quest
for higher loan yields by reaching down the capital structure, and
prefer to accept lower loan yields in lieu of increased credit risk.”
New Originations for Q1 2015:
As of March 16, 2015, Hercules has originated approximately $170.0
million of debt and equity commitments to new and existing portfolio
companies.
Seven (7) new commitments to the following innovative growth stage
companies:
Technology Portfolio - $36.0 Million
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$25.0 million to a leading technology provider of message management
solutions and services for email service providers, internet service
providers, social networks and large enterprises
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$11.0 million to a leading technology developer of high-speed
connectivity solutions for data centers, enterprise and mobile
applications
Life Sciences Portfolio - $99.0 Million
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$27.0 million to a development-stage oncology company focused on
developing cancer drugs using its tumor targeting platform
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$25.0 million to a leading pharmaceutical company developing novel
products utilizing its proprietary transdermal drug delivery technology
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$20.0 million to a biotechnology company developing therapeutic
antibody-based products
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$15.0 million to a specialty pharmaceutical company developing
proprietary, abuse-prevention oral products for the treatment of pain
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$12.0 million to a leading medical device company developing
minimally-invasive medical devices for weight loss
New Investments to Existing Portfolio Companies - $35.0 Million
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Hercules provided approximately $35.0 million of debt and equity
commitments and renewals to existing portfolio companies.
As of March 16, 2015, Hercules had unfunded debt commitments of
approximately $343.6 million, representing potential future portfolio
growth. Approximately $215.0 million of these unfunded commitments are
contingent upon the portfolio company achieving certain performance
milestones prior to Hercules’ debt commitments becoming available.
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 intends to
continue to institute funding or performance-based milestone
requirements to mitigate risk which will affect our actual funding
levels.
Principal Repayments/Early Pay-Offs:
As of March 16, 2015, Hercules received approximately $50.5 million in
principal repayments, exclusive of revolver payments, for Q1 2015, of
which approximately $23.0 million were unscheduled early repayments.
Portfolio IPO Activities in Q1 2015:
IPO Activities
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Six (6) Portfolio Companies Currently in IPO Registration:
As of March 16, 2015, Hercules had warrant and equity positions in six
portfolio companies that had filed Registration Statements in
contemplation of a potential IPO:
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Good Technology
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ViewRay Incorporated
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Four 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.
Three (3) Completed IPO Liquidity Events:
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In January 2015, Hercules’ portfolio company, Box, Inc. (NYSE: BOX),
completed its initial public offering. The shares held by Hercules in
Box are subject to certain restrictions that govern the timing of our
divestment and may thus impact our ultimate gain or (loss). In the
case of Box, we are subject to a customary IPO lockup period and are
restricted from selling shares of common stock for approximately six
months from the date of the initial public offering. The potential
gain is subject to the price of the shares when Hercules exits the
investment.
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In January 2015, Hercules’ portfolio company, Zosano Pharma
Corporation (NASDAQ: ZSAN), completed its initial public offering.
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In February 2015, Hercules’ portfolio company, Inotek Pharmaceuticals
Corporation (NASDAQ: ITEK), completed its initial public offering.
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 industries,
including technology, biotechnology, life science, and energy &
renewable technology, at all stages of development. Since inception
(December 2003), Hercules has committed more than $4.9 billion to over
310 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
The information disclosed in this release is made as of the date hereof
and reflects Hercules most current assessment of its historical
financial performance. Actual financial results filed with the
Securities and Exchange Commission may differ from those contained
herein due to timing delays between the date of this release and
confirmation of final audit results. 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 volatility, 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.
CONTACT:
Hercules Technology Growth Capital, Inc.
Michael
Hara, 650-433-5578 HT-HN
Investor Relations and Corporate
Communications
mhara@htgc.com
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