Hercules Capital Announces ~$400 Million in Total New Commitments for the 1H2017 & Provides Interim Portfolio Update for Q2 2...
05 July 2017 - 8:00PM
Business Wire
- Closed total new debt and equity
commitments of $206 million to nine (9) companies including seven
(7) new and two (2) existing portfolio companies in Q2 2017
- Closed total new debt and equity
commitments of ~$400 million for the first six months of 2017
- Unscheduled principal repayments “early
pay-offs” of ~$166 million for Q2 2017; ~$267 million for the first
six months of 2017
- Six (6) Hercules portfolio companies
currently in IPO Registration
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 provided its interim portfolio
update for the second quarter 2017.
“We have had a very busy second quarter and first half of 2017
with exceptionally strong portfolio activity, including both
announced and in-process M&A events as highlighted in our
recent press release, and higher than anticipated levels of
refinancing activities,” stated Manuel A. Henriquez, founder,
chairman and chief executive officer of Hercules. “We continue to
execute our ‘slow and steady’ growth strategy, maintaining a
conservative underwriting posture, and reinvesting unscheduled
early repayments in an effort to maintain debt investment portfolio
balances.”
Henriquez added, “New origination activity during the second
quarter was robust as we closed $206 million of new commitments,
bringing us to nearly $400 million in new commitments for the first
half of 2017, exceeding our previously stated target of $350 to
$375 million. Unscheduled early payoffs continue at
higher-than-expected levels, driven by a combination of M&A
activity, increased portfolio company milestone and development
achievements, and an abundance of liquidity in the broader capital
markets looking for assets and higher yields.”
Henriquez concluded, “We continue to be guardedly optimistic and
well positioned heading into the second half of 2017, maintaining a
highly asset sensitive balance sheet that continues to benefit from
rising interest rates. Our strong liquidity position enables us to
onboard new investments that meet our stringent underwriting
practices and we continue to monitor the new administration’s
proposed fiscal and regulatory policies and reforms and how they
will impact the overall macroeconomic environment.”
New Debt and Equity Commitments for Q2 2017:
In the three months ended June 30, 2017, Hercules has
originated $206 million of new debt and equity commitments to nine
(9) new and existing portfolio companies.
Seven (7) new commitments to innovative venture growth stage
companies
Technology Portfolio – $100
Million
- $20 million to a leading provider of
market data software, managed services, and content to global
financial services clients, connecting banks, hedge funds, and
other buy and sell-side firms to global markets for trading across
many asset classes
- $15 million to a leading technology
developer that provides a SaaS-based platform to health plans to
provide their members with access to cost, quality and engagement
transparency tools
- $55 million to a developer of a
cloud-based unified communications platform that combines voice and
customer communications with business and customer management
applications
- $10 million to a developer of a
platform that allows clients to track all media channels, automate
tag management, onboard and pay direct partners, while viewing and
optimizing all conversion paths
Life Sciences Portfolio – $66
Million
- $35 million to a specialized pharma
product development company focused on developing patented drug
delivery systems and injectable device engineering
capabilities
- $20 million to a privately held
clinical-stage biotechnology company focused on the development of
therapeutics for diseases involving mitochondrial dysfunction
- $11 million to a clinical-stage private
medical device company dedicated to creating new light-based
therapies for the treatment of dermatological conditions
New Commitments to Two (2) Existing
Portfolio Companies – $40 Million
- $30 million to a clinical stage
biopharmaceutical company focused on applying its deuterated
chemical entity platform to create novel medicines designed to
address unmet patient needs
- $10 million to a biopharmaceutical
company focused on the development and commercialization of
innovative therapies based upon its expertise in novel tetracycline
chemistry
Unscheduled Early Principal Repayments “Early
Pay-Offs:”
For the three months ended June 30, 2017, Hercules received
~$166 million in unscheduled early principal repayments “early
pay-offs.”
Portfolio Company IPO, M&A and Other Activity in Q2
2017:
Please refer to our previously released announcement “Hercules
Capital Announces Additional Portfolio Company Liquidity Events and
Congratulates Its Portfolio Companies on Their Achievement,” dated
June 29, 2017.
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
under the ticker symbol "HTGC." In addition, Hercules has one
outstanding bond issuance 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170705005313/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
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