Hercules Capital Increases Its Committed Letter of Credit Facility with SMBC

Rhea-AI Summary

Hercules Capital, Inc. (NYSE: HTGC) has announced an increase of $75 million in its committed letter of credit facility with Sumitomo Mitsui Banking Corporation (SMBC), bringing the total credit capacity to $175 million. This facility also features an uncommitted accordion feature of up to $400 million. CFO Seth Meyer emphasized that this expansion will enhance Hercules' ability to provide financing solutions to its growth and late-stage venture portfolio companies. Since its inception in December 2003, Hercules has committed over $16 billion to more than 600 companies, positioning itself as a leader in specialty finance for venture-backed firms.

Positive

• Increased letter of credit facility by $75 million to $175 million, enabling better financing solutions.
• Uncommitted accordion feature of up to $400 million enhances financial flexibility.
• Established leader in providing senior secured venture growth loans to innovative companies.

Negative

• None.

PALO ALTO, Calif.--(BUSINESS WIRE)-- Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”) the largest and leading specialty financing 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 it has increased its committed letter of credit facility with Sumitomo Mitsui Banking Corporation (“SMBC”) by $75.0 million for a total of $175.0 million in credit capacity subject to borrowing base, leverage and other restrictions. The increased credit facility also includes an uncommitted accordion feature of up to $400.0 million in total facility size.

“With the increase to our letter of credit facility with SMBC, we continue to expand and enhance our ability to provide flexible and expedient financing solutions to our current and prospective growth and late-stage venture portfolio companies,” said Seth Meyer, chief financial officer of Hercules. “We want to thank SMBC for their continued support in helping us strengthen our industry-leading franchise.”

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 $16 billion to over 600 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, Hercules Adviser LLC (“Hercules Adviser”), also maintains an asset management business through which it manages investments for external parties (“Adviser Funds”). Hercules Adviser 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/20230322005116/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 recent financial development?

Hercules Capital increased its letter of credit facility with SMBC by $75 million, totaling $175 million.

How does the new credit facility affect Hercules Capital's operations?

The expansion enhances Hercules' ability to provide flexible financing solutions to its portfolio companies.

What is the total credit capacity of Hercules Capital's facility with SMBC?

The total credit capacity with SMBC is now $175 million, with an additional accordion feature of up to $400 million.

How much has Hercules Capital committed since its inception?

Since December 2003, Hercules Capital has committed over $16 billion to more than 600 companies.

What are the ticker symbols for Hercules Capital?

Hercules Capital trades on the NYSE under the ticker symbol 'HTGC' and has a retail bond issuance under 'HCXY'.