Hercules Capital Completes Investment Grade Bond Offering of $50.0 Million of 4.55% Notes due March 2026

Rhea-AI Summary

Hercules Capital (NYSE: HTGC) announced the issuance of $50.0 million in 4.55% Notes due March 2026. The unsecured notes, bearing a semiannual interest rate of 4.55%, may be redeemed at the company's option. The proceeds will be utilized to pay down existing credit facilities, fund investments, and for general corporate purposes. Hercules has committed over $11.1 billion to more than 520 companies since its inception in 2003, positioning itself as a leader in providing venture growth loans to innovative businesses.

Positive

• Issuance of $50.0 million in 4.55% Notes expected to enhance liquidity.
• Proceeds will be used to reduce existing credit facilities, potentially lowering interest costs.
• Strengthens Hercules' capacity to invest in growth opportunities.

Negative

• The issuance of new notes may lead to dilution of existing shareholder value.

Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”) today announced the completed issuance of a private offering in aggregate principal amount of $50.0 million 4.55% Notes due March 2026 (the “March B Notes”). On November 4, 2020, the Company completed the initial issuance of $50.0 million 4.50% Notes due March 4, 2026, which were initially assigned a BBB+ rating by Kroll Bond Rating Agency.

The March B Notes are unsecured and bear an interest rate of 4.55% per year, payable semiannually and will mature on March 4, 2026, and may be redeemed in whole or in part at any time or from time to time at the Company’s option at any time plus a premium, if applicable. The issuance of $50.0 million of the March Notes occurred on March 4, 2021.

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 $11.1 billion to over 520 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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FAQ

What is the significance of Hercules Capital's $50 million note issuance?

The $50 million note issuance allows Hercules Capital to improve liquidity and fund further investments.

What is the interest rate on the new notes issued by Hercules Capital?

The new notes have an interest rate of 4.55%, payable semiannually.

When do the newly issued notes from Hercules Capital mature?

The notes are set to mature on March 4, 2026.

How will Hercules Capital use the proceeds from the note issuance?

The proceeds will be used to pay down existing credit facilities and fund investments in debt and equity securities.

What are the potential risks associated with Hercules Capital's note issuance?

The issuance may lead to dilution of existing shareholder value.