Hercules Continues to Expand Its Wells Fargo Accordion Credit Facility with an Additional $25 Million from EverBank
08 April 2016 - 8:00PM
Business Wire
Hercules Capital, Inc. (NYSE:HTGC) (“Hercules” or the “Company”)
the leading specialty financing provider to innovative venture
growth stage companies backed by leading venture capital firms,
today announced that effective April 7, 2016, it has expanded its
credit facility with Wells Fargo Capital Finance (“WFCF”), part of
Wells Fargo & Company (NYSE:WFC), under which EverBank has
committed $25.0 million, for a total of $120.0 million in credit
capacity under a $300.0 million accordion credit facility, subject
to borrowing base, leverage and other restrictions. Borrowings
under the enhancement maintain the current interest rate of LIBOR
plus 3.25% with no floor and a maturity date to August 2018, plus a
12-month amortization period. The advance rate of 50% against
eligible loans remains the same.
This is in addition to the Company’s previous announcement on
March 8, 2016, of adding AloStar Bank of Commerce to the Wells
Fargo accordion credit facility by an additional $20.0 million
commitment.
“We are excited to have EverBank join our facility and
increasing our capacity to $120 million,” stated Mark R. Harris,
chief financial officer of Hercules. “Expanding our debt capacity
and enhancing our treasury capabilities, at a lower cost of debt,
is very beneficial for Hercules shareholders as it potentially
increases net investment income and earnings per share. This
facility expansion exemplifies our long-standing credit stature
with some of the industry’s highest-quality banking institutions
and our success at increasing our credit capacity as we grow our
business. We look forward to further business opportunities with
our two new partner banks, AloStar and EverBank, as well as our
long-time partner Wells Fargo.”
For additional information, please review the Company’s current
report on Form 8-K, to be filed with the Securities and Exchange
Commission, which will include the completed transaction
documents.
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading
and largest specialty finance company focused on providing senior
secured venture growth loans to high-growth, innovative venture
capital-backed companies in a broadly diversified variety of
technology, life sciences and sustainable and renewable technology
industries. Since inception (December 2003), Hercules has committed
more than $5.7 billion to over 335 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
(NYSE) under the ticker symbol "HTGC."
In addition, Hercules has three outstanding bond issuances of
7.00% Notes due April 2019, 7.00% 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 press 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 SEC 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 the Company identifies from time to time in its
filings with the SEC. Although Hercules believes 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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version on businesswire.com: http://www.businesswire.com/news/home/20160408005138/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
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