Hercules Capital Strengthens Its Capital Resources with New $400.0 Million Credit Facility to Support Continued Investment Po...
February 20 2020 - 6:00AM
Business Wire
The Company has replaced its $200.0 million
MUFG credit facility with a $400.0 million facility, with all
existing lenders and several new lenders providing commitments
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the
“Company”) the largest and leading specialty finance provider to
innovative, venture, growth and established stage companies backed
by some of the leading and top-tier venture capital and select
private equity firms, today announced that effective February 20,
2020, it has replaced its existing $200.0 million credit facility
with MUFG Union Bank N.A. (“MUFG”) with a new credit facility under
which Royal Bank of Canada /City National Bank, a National Banking
Association, Goldman Sachs Bank USA, Umpqua Bank, TIAA, FSB, Zions
Bancorporation, N.A., dba California Bank & Trust, HSBC Bank
USA, N.A., Hitachi Capital America Corporation and CIT Bank, N.A.,
together with MUFG, have committed a total of $400.0 million in
credit capacity subject to borrowing base, leverage and other
restrictions. The new credit facility also includes an uncommitted
accordion feature of $200.0 million. The interest rate applicable
to borrowings under the new credit facility has been reduced to
LIBOR plus 2.50% and the advance rate under the new credit facility
has been increased to a maximum of 65% against eligible loans. The
new credit facility matures in February 2023, plus a 12-month
amortization period.
“With the announcement of our recent 5-year investment grade
bond offering totaling $120.0 million and our new credit facility
with MUFG and others, our combined total potential new liquidity
has been greatly enhanced and will allow us to continue to pursue
growth of our investment portfolio,” said Seth Meyer, chief
financial officer of Hercules. “This new credit facility is larger,
with improved pricing and flexibility, and is supported by a very
strong syndication of existing and new lenders. The further
strengthening of our capital and liquidity positions us well to
fund the growth of our business and take advantage of market
opportunities.”
Scott Bluestein, chief executive officer and chief investment
officer of Hercules added, “Reducing our cost of capital and
improving operational flexibility is a priority for us and this new
facility accomplishes both. We welcome each of our new lenders and
thank our existing bank partners and MUFG 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) 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 $10.0
billion to over 490 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 ticker symbol HTGC. In addition, Hercules has two
retail bond issuances of 5.25% Notes due 2025 (NYSE: HCXZ) and
6.25% Notes due 2033 (NYSE: HCXY).
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/20200220005297/en/
Michael Hara Investor Relations and Corporate Communications
Hercules Capital, Inc. (650) 433-5578 mhara@htgc.com
Hercules Capital (NYSE:HTGC)
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