Hercules Capital’s Highly Asset Sensitive Debt Investment Portfolio to Generate Additional $0.03 of Net Investment Income E...
15 June 2017 - 8:00PM
Business Wire
- 92.8% of Hercules’ existing Debt
Investment Portfolio is priced at floating interest rates, as of
March 31, 2017
- 100.0% of the Company’s outstanding
debt liability obligations are fixed rate, as of March 31,
2016
- The Prime Rate is expected to increase
from 4.00% to 4.25%
- A 25 basis point increase in the Prime
Rate is anticipated to generate approximately $2.4 million, or
$0.03 per share of additional Net Investment Income or “NII”
(1)
Hercules Capital, Inc. (NYSE:HTGC) (“Hercules” or the
“Company”), the leading specialty finance company to innovative,
venture growth, pre-IPO and M&A stage companies backed by
leading venture capital firms, today announced the estimated
accretive impact to its debt investment portfolio attributed to the
Federal Reserve - Federal Open Market Committee’s (“FOMC”) increase
in the federal funds rate by 25 basis points, or 0.25%.
Hercules anticipates a 25 basis point increase in the Prime Rate
will contribute approximately $2.4 million, or $0.03 per share, of
NII per annum, based on the basic weighted share outstanding as of
March 31, 2017. As of March 31, 2017, 92.8% of Hercules’ debt
investment portfolio of $1.4 billion, at cost, was primarily priced
at PRIME or LIBOR-based floating interest rates, while 100.0% of
the Company’s outstanding debt obligations have a fixed rate of
interest, well positioning Hercules for additional future rate
increases. Given the expected increase to the Prime Rate will be
taking effect in mid-June 2017, the anticipated increase is not
expected to have any material impact to our NII in Q2 2017. The
expected benefit from the June 2017 rate increase is expected to
materialize during the remainder our 2017 operating period.
Based on Hercules’ Consolidated Statement of Assets and
Liabilities as of March 31, 2017, the following table illustrates
the approximate annualized increase in components of net income
resulting from hypothetical base rate changes in interest rates,
such as prime rate, assuming no changes in the Company’s
investments and borrowings.
(in thousands) Interest
Interest Net EPS(1) Basis Point
Change Income Expense Income 25 $
2,436 $ 1 $ 2,435 $ 0.03 50 $ 5,229 $ - $ 5,229 $ 0.06 75 $ 8,252 $
1 $ 8,251 $ 0.10 100 $ 11,275 $ 2 $ 11,273 $ 0.14 200 $ 24,214 $ 3
$ 24,211 $ 0.30 300 $ 37,597 $ 5 $ 37,592 $ 0.46 (1) EPS calculated
on basic weighted shares outstanding of 81,420. Estimates are
subject to change due to impact from active participation in the
Company's equity ATM program.
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 broad variety of technology, life
sciences and sustainable and renewable technology industries. Since
inception (December 2003), Hercules has committed more than $6.7
billion to over 375 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
one outstanding bond issuances of 6.25% Unsecured Notes due July
2024 (NYSE: HTGX)
Forward-Looking Statements
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. You should understand that under Section 27A(b)(2)(B) of
the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of
the Securities Exchange Act of 1934, as amended, or the Exchange
Act, the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995 do not apply to forward-looking
statements made in periodic reports we file under the Exchange
Act.
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/20170615005345/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jul 2023 to Jul 2024