Hercules Capital Declares a Total Cash Distribution of $0.48 per Share for the Third Quarter 2024

Rhea-AI Summary

Hercules Capital (HTGC) has declared a total cash distribution of $0.48 per share for Q3 2024, consisting of a $0.40 base distribution and an $0.08 supplemental distribution. The distribution will be paid on November 20, 2024, to stockholders of record as of November 13, 2024. The company maintains a variable distribution policy targeting 90-100% of quarterly taxable income. For Q3 2024, 100% of distributions were derived from current earnings and profits, with 80.08% qualifying as Qualified Interest Income for foreign accounts.

Positive

• Declared total cash distribution of $0.48 per share for Q3 2024
• 100% of distributions derived from current earnings and profits
• 80.08% of distributions qualify as Qualified Interest Income

Negative

• None.

Insights

Financial Analyst

The $0.48 quarterly distribution, consisting of a $0.40 base and $0.08 supplemental payment, demonstrates Hercules Capital's strong financial position and commitment to shareholder returns. The distribution policy targeting 90-100% of taxable income showcases disciplined capital management. With 80.08% of distributions qualifying as QII, this adds tax efficiency for international investors. The predictable payment schedule and transparency in tax attributes reflect robust financial planning. The supplemental component indicates excess earnings beyond base distribution requirements, signaling healthy portfolio performance in the venture debt space.

The Total Cash Distribution of $0.48 per Share for the Third Quarter 2024 is Comprised of a $0.40 per Share Base Distribution and an $0.08 per Share Supplemental Distribution

SAN MATEO, Calif.--(BUSINESS WIRE)-- 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, is pleased to announce that its Board of Directors has declared a third quarter 2024 total cash distribution of $0.48 per share. The following shows the key dates of the third quarter 2024 distribution payment:

Record Date			November 13, 2024
Payment Date			November 20, 2024

Hercules' Board of Directors maintains a variable distribution policy with the objective of distributing four quarterly distributions in an amount that approximates 90% to 100% of the Company’s taxable quarterly income or potential annual income for a particular year. In addition, during the year, the Company’s Board of Directors may choose to pay additional supplemental distributions, so that the Company may distribute approximately all its annual taxable income in the year it was earned, or it can elect to maintain the option to spill over the excess taxable income into the coming year for future distribution payments.

The determination of the tax attributes of the Company's distributions is made annually as of the end of the Company's fiscal year based upon its taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of its distributions for a full year. Of the distributions declared during the quarter ended September 30, 2024, 100% were distributions derived from the Company’s current earnings and profits. There can be no certainty to stockholders that this determination is representative of the tax attributes of the Company’s 2024 full year distributions to stockholders.

Pursuant to Internal Revenue Code Section 871(k), certain funds generate “Qualified Interest Income” (QII) that may be exempt for U.S. withholding tax on foreign accounts. A regulated investment company (“RIC”) is permitted to designate distributions of QII as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation.

The percentage of QII for distributions declared for the third quarter ended September 30, 2024 on Hercules’ common stock is 80.08%.

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 $20 billion to over 660 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, 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 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. 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/20241028693625/en/

Michael Hara

Investor Relations and Corporate Communications

Hercules Capital, Inc.

(650) 433-5578

mhara@htgc.com

Source: Hercules Capital, Inc.

FAQ

What is Hercules Capital's (HTGC) dividend payment for Q3 2024?

Hercules Capital declared a total cash distribution of $0.48 per share for Q3 2024, consisting of a $0.40 base distribution and $0.08 supplemental distribution.

When is HTGC's Q3 2024 dividend payment date?

The Q3 2024 dividend payment date is November 20, 2024, with a record date of November 13, 2024.

What percentage of HTGC's Q3 2024 distribution qualifies as Qualified Interest Income?

80.08% of the Q3 2024 distribution qualifies as Qualified Interest Income for foreign accounts.

What is Hercules Capital's (HTGC) distribution policy?

HTGC maintains a variable distribution policy targeting 90-100% of quarterly taxable income, with potential additional supplemental distributions throughout the year.