- Closed New Debt and Equity Commitments
for Q1 2016 of $220.9 Million
- Fourteen (14) New Commitments to a
Broad Variety of Technology, Life Sciences and Sustainable &
Renewable Innovative High-Growth Venture-Backed Companies
- Materially Lower Unscheduled Principal
Repayments “Early Pay-offs” for Q1 2016 of $55.0 Million
- Four (4) Hercules Portfolio Companies
Currently in IPO Registration
Hercules Capital, Inc. (NYSE:HTGC) (“Hercules” or the
“Company”), the leading specialty financing provider to innovative
venture growth, pre-IPO and M&A stage companies backed by
leading venture capital firms, today provided its portfolio update
for Q1 2016.
“I am delighted to see our organization’s continued execution at
all levels, as we pursue our controlled growth by adhering to our
‘slow and steady’ strategy, and march towards our plan of growing
our investment loan portfolio by approximately $200 million in the
first half of 2016 to a loan portfolio valued between $1.25 to $1.3
billion, subject to market conditions,” stated Manuel A. Henriquez,
chairman and chief executive officer of Hercules. “We are off to a
great start in 2016, with over $220 million in new commitments, and
with an equally strong pipeline of potential deals of over $1.1
billion extending into Q2 2016. We have also been working hard at
increasing our access to additional liquidity for growth through
the expansion of our Wells Fargo accordion credit facility. With an
additional $45.0 million from Alostar Bank of Commerce and
EverBank, we continue to methodically convert our strong liquidity
position into new interest-earning loans to innovative venture
growth stage companies, ultimately driving potential earnings
growth and dividend coverage expected to occur in the second half
of 2016 as planned, subject to market conditions.”
New Debt and Equity Commitments for Q1 2016
As of March 31, 2016, Hercules has originated $220.9
million of debt and equity commitments to new and existing
portfolio companies.
Fourteen (14) new commitments to innovative venture growth
stage companies:
Technology Portfolio – $62.5
Million
- $15.0 million to a technology developer
of cloud application authentication and identity management
- $4.0 million to a consumer consignment
retailer of women’s designer clothing, shoes and accessories
- $15.0 million to a technology developer
operating an automated B2C CRM platform for small and medium
businesses, tracking various aspects of marketing from directory
and social profile management to in-store behavior and customer
purchases
- $8.5 million to a technology-based
sourcing and procurement company developing customized solutions
for the procurement of printed materials and related commodities
and services
- $15.0 million to a technology media
content developer that allows its members to read and share e-books
on the Web and on mobile devices
- $5.0 million to a software developer
enabling collaborative development production and analysis of
software and products in real time on individual and cloud
environments
Life Sciences Portfolio – $117.0
Million
- $20.0 million to a clinical stage
biopharmaceutical company focused on discovering and developing
novel cellular immunotherapies for various forms of cancer,
including both hematological and solid tumors, as well as orphan
inherited blood disorders
- $15.0 million to a development-stage
company focused on the acquisition, development and
commercialization of innovative drug therapies for the treatment of
skin diseases
- $40.0 million to a biopharmaceutical
company in the development of oncology drugs, using its
tumor-targeting linker system to improve the therapeutic index of
known anti-cancer agents
- $10.0 million to a biopharmaceutical
company developing a new class of immunomodulatory and gene slicing
drugs against validated targets
- $12.0 million to a cardiovascular
company that develops drug-delivery systems
- $20.0 million to a developer of medical
devices designed to provide advanced haemodialysis solutions for
use in the clinic and the home
Sustainable and Renewable Technology
Portfolio – $25.0 Million
- $10.0 million to a developer and
licensor of materials-based solutions for catalytic and separations
processes based on proprietary technology licensed from the
Massachusetts Institute of Technology
- $15.0 million to a developer of
technology to create and improve metabolic pathways for the
production of adipic acid and ethanol
New Investments to Existing Portfolio
Companies – $16.4 Million
Unfunded Commitments:
As of March 31, 2016, the Company had $162.7 million of total
unfunded commitments, however, only $64.7 million of unfunded
commitments, including undrawn revolving facilities, were available
at the request of the portfolio company and unencumbered by any
milestones.
In addition, we had $98.0 million of various specific milestone
requirements to be achieved by select portfolio companies or other
covenant restrictions limiting availability of those commitments,
many of which are expected to require milestones that may be
greater than one year or more in the future before becoming
available.
The Company’s unfunded commitments and contingencies consist
primarily of unused commitments to extend credit in the form of
loans to select Company’s portfolio companies. A portion of these
unfunded contractual commitments are dependent upon the portfolio
company reaching certain milestones in order to gain access to
additional funding. Furthermore, our credit agreements contain
customary lending provisions that allow us relief from funding
obligations for previously made commitments. In addition, since a
portion of these commitments may also expire without being drawn,
unfunded contractual commitments do not necessarily represent
future cash requirements.
Scheduled and Unscheduled Principal Repayments “Early
Pay-Offs”:
As of March 31, 2016, Hercules received $76.4
million in total principal repayments, of which $55.0 million
was unscheduled early repayments.
Portfolio IPO and M&A Activity in Q1 2016:
IPO Activities
1. As March 31, 2016, Hercules held warrant and equity positions
in four (4) portfolio companies that had confidentially filed Form
S-1 Registration Statements under the JOBS Act with the SEC in
contemplation of a potential IPO.
There can be no assurances that companies that have yet to
complete their IPOs will do so.
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
$5.9 billion to 349 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 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160411005324/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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