Hercules Capital Announces an Investment Grade Bond Offering Totaling $100.0 Million Due 2026
Hercules Capital (NYSE: HTGC) announced a private offering of $100 million, comprising $50 million in 4.50% Notes and $50 million in 4.55% Notes, both maturing in March 2026. The November Notes will fund existing credit facilities, debt, and equity investments, while the March Notes are scheduled for issuance in March 2021. Goldman Sachs acted as the sole placement agent. Hercules has funded over $11 billion to more than 520 companies since 2003, focusing on senior secured venture growth loans.
- Private offering of $100 million enhances liquidity.
- Funds will be used for paying down credit facilities and growth investments.
- Company's strong track record with over $11 billion committed to 520+ companies.
- Potential dilution of existing shares due to the offering.
- Market volatility may impact the successful issuance of notes.
PALO ALTO, Calif.--(BUSINESS WIRE)--Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”) today announced a private offering totaling
The November Notes are unsecured and bear an interest rate of
The March Notes are unsecured and bear an interest rate of
The Company expects to use the net proceeds from this offering (i) to pay down existing credit facilities, (ii) to fund investments in debt and equity securities in accordance with its investment objective, and (iii) for other general corporate purposes.
Goldman Sachs & Co. LLC was the sole placement agent of this offering.
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
Hercules’ common stock trades on the New York Stock Exchange (NYSE) under ticker symbol HTGC. In addition, Hercules has two retail bond issuances of
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. There is no assurance that the offering of the June Notes will close in June 2020 or at all. Actual events, including the issuance of the June Notes and the use of proceeds from the offering of the February Notes and the June Notes may differ from those described herein. These forward-looking statements are not guarantees of future events 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.
