Hercules Capital Increases & Strengthens Its Capital Resources with New $200.0 Million Credit Facility to Support Continued I...
21 February 2019 - 9:55AM
Business Wire
The Company has replaced its $100.0 million
MUFG Union Bank, N.A. credit facility with a $200.0 million
facility, with new participating commercial banks providing
commitments
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the
“Company”) the largest and leading specialty finance provider to
innovative, venture growth stage companies backed by some of the
leading U.S. and top-tier venture capital and select private equity
firms, today announced that effective February 20, 2019, it has
replaced its existing $100.0 million credit facility with MUFG
Union Bank with a new credit facility under which City National,
Umpqua Bank, Hitachi Capital America Corporation and Mutual of
Omaha Bank, together with MUFG Union Bank, have committed a total
of $200.0 million in credit capacity subject to borrowing base,
leverage and other restrictions. The new credit facility also
includes an uncommitted accordion feature of $100.0 million. The
interest rate applicable to borrowings under the new credit
facility has been reduced to LIBOR plus 2.70%. The new credit
facility matures in February 2022, plus a 12-month amortization
period. The advance rate under the new credit facility has been
increased to 55% against eligible loans.
“With the completion of our two recent securitizations totaling
$450.0 million, the renewal of our Wells Fargo credit facility of
$75.0 million, and our new credit facility accordion with MUFG
Union Bank, our combined total potential new liquidity has been
greatly enhanced and will allow us to continue to pursue growth of
our investment portfolio. We are well positioned to take advantage
of our growing and robust new deal pipeline as well as any market
dislocations and strategic new potential opportunities that may
present itself,” said Manuel A. Henriquez, chairman and chief
executive officer of Hercules. “With our new asset coverage ratio
increasing our flexibility, we intend to more actively use our
banking credit facilities to grow our investment portfolio moving
forward, along with our access to the securitization marketplace.
We welcome our new commercial bank partners and thank MUFG Union
Bank for their long-standing support of our industry-leading
franchise, and look forward to continuing our long-term
relationship.”
For additional information, please review the Company’s current
report on Form 8-K, to be filed with the Securities and Exchange
Commission (“SEC”), 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 broad variety of technology, life
sciences and sustainable and renewable technology industries. Since
inception (December 2003), Hercules has committed more than $8.2
billion to over 440 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
six outstanding bond issuances of:
Institutional Notes PAR $1000.00
Retail Notes (“Baby Bonds”) PAR $25.00
- 5.25% Notes due 2025 (NYSE: HCXZ)
- 6.25% Notes due 2033 (NYSE: HCXY)
Convertible Notes
- 4.375% Convertible Notes due 2022
Securitization Notes
- 4.605% Asset-backed Notes due 2027
- 4.703% Asset-backed Notes due 2028
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: https://www.businesswire.com/news/home/20190220005976/en/
Michael HaraInvestor Relations and Corporate
CommunicationsHercules Capital, Inc.(650)
433-5578mhara@htgc.com
Hercules Capital (NYSE:HTGC)
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