Hercules Capital Announces Offering of $250.0 Million of Convertible Unsecured Notes
Hercules Capital (NYSE: HTGC) has announced plans to offer $250.0 million in Convertible Unsecured Notes due 2028, with an additional $37.5 million overallotment option. The notes will:
- Be offered exclusively to qualified institutional buyers and certain non-U.S. persons
- Pay interest semiannually
- Be convertible to cash, common stock, or a combination thereof
- Mature on September 1, 2028
The company plans to use the proceeds to fund investments in debt and equity securities and for working capital purposes. The final terms, including interest rate and conversion rate, will be determined through negotiations with initial purchasers. The notes and potential conversion shares will not be registered under the Securities Act.
Hercules Capital (NYSE: HTGC) ha annunciato piani per offrire 250,0 milioni di dollari in Note Convertibili Non Garantite con scadenza nel 2028, con un'opzione di sovrallocazione aggiuntiva di 37,5 milioni di dollari. Le note:
- Saranno offerte esclusivamente a compratori istituzionali qualificati e a determinate persone non statunitensi
- Pagheranno interessi semestralmente
- Potranno essere convertite in contante, azioni ordinarie o una combinazione di entrambi
- Scadranno il 1 settembre 2028
L'azienda prevede di utilizzare i proventi per finanziare investimenti in titoli di debito e azionari e per esigenze di capitale circolante. I termini finali, inclusi il tasso di interesse e il tasso di conversione, saranno determinati attraverso negoziazioni con i compratori iniziali. Le note e le potenziali azioni di conversione non saranno registrate ai sensi del Securities Act.
Hercules Capital (NYSE: HTGC) ha anunciado planes para ofrecer 250.0 millones de dólares en Notas Convertibles No Garantizadas con vencimiento en 2028, con una opción de sobreasignación adicional de 37.5 millones de dólares. Las notas:
- Se ofrecerán exclusivamente a compradores institucionales calificados y a ciertas personas no estadounidenses
- Pagarán intereses semestralmente
- Podrán ser convertidas en efectivo, acciones ordinarias o una combinación de ambos
- Vencerán el 1 de septiembre de 2028
La empresa planea utilizar los ingresos para financiar inversiones en valores de deuda y capital y para fines de capital de trabajo. Los términos finales, incluyendo la tasa de interés y la tasa de conversión, se determinarán a través de negociaciones con los compradores iniciales. Las notas y las posibles acciones de conversión no estarán registradas bajo la Ley de Valores.
헐큘리스 캐피탈 (NYSE: HTGC)는 2028년 만기인 2억 5천만 달러의 전환 무담보 채권을 제공할 계획을 발표했으며, 추가로 3천7백5십만 달러의 추가 배정 옵션이 있습니다. 채권은:
- 자격을 갖춘 기관 투자자와 특정 비미국인에게만 제공됩니다
- 반기마다 이자를 지급합니다
- 현금, 보통주 또는 이들의 조합으로 전환할 수 있습니다
- 2028년 9월 1일 만기입니다
회사는 수익금을 부채 및 자본 증권에 대한 투자와 운영 자본 용도로 사용할 계획입니다. 최종 조건, 이자율 및 전환 비율은 초기 구매자와의 협상을 통해 결정됩니다. 채권 및 잠재적 전환 주식은 증권법에 따라 등록되지 않습니다.
Hercules Capital (NYSE: HTGC) a annoncé son intention d'offrir 250,0 millions de dollars en Obligations Convertibles Non Garanties arrivant à échéance en 2028, avec une option de surallocation supplémentaire de 37,5 millions de dollars. Les obligations :
- Seront offertes exclusivement aux acheteurs institutionnels qualifiés et à certaines personnes non américaines
- Payeront des intérêts semestriellement
- Pourront être converties en espèces, en actions ordinaires ou en une combinaison des deux
- Arriveront à échéance le 1er septembre 2028
L'entreprise prévoit d'utiliser les produits pour financer des investissements dans des titres de créance et des actions et pour des besoins de fonds de roulement. Les conditions finales, y compris le taux d'intérêt et le taux de conversion, seront déterminées par des négociations avec les acheteurs initiaux. Les obligations et les actions de conversion potentielles ne seront pas enregistrées en vertu de la Loi sur les valeurs mobilières.
Hercules Capital (NYSE: HTGC) hat Pläne angekündigt, 250,0 Millionen Dollar in wandelbaren unbesicherten Anleihen mit Fälligkeit im Jahr 2028 anzubieten, mit einer zusätzlichen Überzeichnungsoption von 37,5 Millionen Dollar. Die Anleihen werden:
- Exklusiv an qualifizierte institutionelle Käufer und bestimmte Nicht-US-Personen angeboten
- Zinsen halbjährlich zahlen
- In Bargeld, Stammaktien oder eine Kombination davon umwandelbar sein
- Am 1. September 2028 fällig sein
Das Unternehmen plant, die Erlöse zur Finanzierung von Investitionen in Schuldtitel und Eigenkapital sowie für Betriebskapitalzwecke zu verwenden. Die endgültigen Bedingungen, einschließlich Zinssatz und Umwandlungsrate, werden durch Verhandlungen mit den ursprünglichen Käufern festgelegt. Die Anleihen und potenziellen Umwandlungsaktien werden nicht gemäß dem Wertpapiergesetz registriert.
- Additional $250M financing strengthens capital position
- Flexible conversion terms provide financial optionality
- Long-term debt maturity until 2028
- Potential future dilution for shareholders upon conversion
- Additional debt increases financial leverage
- Notes are not redeemable before maturity
Insights
Hercules Capital's $250 million convertible note offering (potentially $287.5 million with overallotments) represents a significant capital raising event that directly supports its business development company (BDC) model. For context, this offering is equivalent to approximately
As a BDC, Hercules' core business involves raising capital and deploying it into venture-backed companies at higher yields. This transaction should enhance HTGC's investment capacity, potentially increasing earning assets and supporting future dividend coverage if deployed effectively.
Several noteworthy features of this offering include: (1) The 2028 maturity provides multi-year funding stability; (2) The flexible settlement option gives management control over potential dilution; and (3) The absence of early redemption rights locks both parties into the terms until maturity.
From a balance sheet perspective, this adds leverage but remains within the regulatory framework that permits BDCs to operate at up to a 2:1 debt-to-equity ratio. The convertible structure typically offers lower interest rates than straight debt, though the actual rate remains undetermined.
For investors, this transaction may initially appear dilutive if converted to equity, but should be viewed primarily as HTGC optimizing its capital structure to potentially enhance returns. The company's ability to access the capital markets on these terms indicates continued institutional confidence in its business model and credit quality.
The Convertible Notes will be unsecured, will pay interest semiannually and will be convertible under specified circumstances based on a conversion rate to be determined. Upon conversion, the Company will pay or deliver, at the Company’s election, cash, shares of the Company’s common stock or a combination of cash and shares of common stock, subject to an irrevocable settlement method election that may be made by the Company. The Company will not have the right to redeem the Convertible Notes prior to maturity. The Convertible Notes will mature on September 1, 2028, unless repurchased or converted in accordance with their terms prior to such date. The interest rate, initial conversion rate and other terms of the Convertible Notes are to be determined upon negotiations between the Company and the initial purchasers.
The Company intends to use the net proceeds from this offering (i) to fund investments in debt and equity securities in accordance with its investment objective and (ii) for working capital and other general corporate purposes.
Neither the Convertible Notes nor the common stock that may be issued upon conversion thereof will be registered under the Securities Act. Neither the Convertible Notes nor the common stock that may be issued upon conversion thereof may be offered or sold in
This press release does not constitute an offer to sell any securities of Hercules Capital, Inc. and is not soliciting an offer to buy such securities in any state where such offer and sale is not permitted.
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 and life sciences industries. Since inception (December 2003), Hercules has committed more than
Hercules, through its wholly owned subsidiary business, Hercules Adviser LLC (the “Adviser Subsidiary”), also maintains an asset management business through which it manages investments for external parties (“Adviser Funds”). The Adviser Subsidiary is registered as an investment adviser under the Investment Advisers Act of 1940.
Hercules’ common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol “HTGC.” In addition, Hercules has one retail bond issuance of
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We may use words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may” and similar expressions to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. While we cannot identify all such risks and uncertainties, we urge you to read the risks discussed in our Annual Report on Form 10-K and other materials that we publicly file with the Securities and Exchange Commission. Any forward-looking statements made in this press release are made only as of the date hereof. Hercules assumes no obligation to update any such statements in the future.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250304019262/en/
Michael Hara
Investor Relations and Corporate Communications
Hercules Capital, Inc.
(650) 433-5578
mhara@htgc.com
Source: Hercules Capital, Inc.
FAQ
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