Hercules Announces Intention to Fully Redeem Its 7.00% Notes Due 2019 – Accretive Balance Sheet Management to Save $2.8 Mil...
January 25 2017 - 4:15PM
Business Wire
Hercules Capital, Inc. (NYSE:HTGC) (“Hercules” or the
“Company”), the leading specialty finance company to innovative,
venture growth, pre-IPO and M&A stage companies backed by
leading venture capital firms, today announced its intent to redeem
100% or approximately $110.4 million (face value) in remaining
issued and outstanding aggregate principal amount of the Company’s
7.00% Notes due 2019 (CUSIP No. 427096888 and 427096870) (the
“Notes”), which were issued pursuant to the indenture dated as of
March 6, 2012, between the Company and U.S. National Bank
Association, as trustee, as supplemented by the second supplemental
indenture dated as of September 24, 2012 (the “Indenture”). The
Notes trade on the New York Stock Exchange under the ticker symbols
“HTGY” and “HTGZ.” The redemption price will be par $25.00 per Note
plus accrued and unpaid interest through, but excluding, the
redemption date, February 24, 2017.
The Notes should be presented and surrendered by mail or by hand
at the office of the Paying Agent, U.S. Bank National Association,
Corporate Trust Services, 111 Fillmore Avenue E, St. Paul, MN
55107. The settlement of the redemption is expected to occur on
February 24, 2017. Questions related to the notice of redemption
and related materials should be directed to U.S. Bank via telephone
at 1-800-934-6802.
The full retirement of the $110.4 million 2019 Notes, along with
the closed 4.375% Convertible Senior Notes due 2022 on January 25,
2017, will save the Company approximately $2.8 million in annual
interest expense (on a cost of funds basis), excluding the one-time
acceleration expense of $1.5 million associated with the redemption
of the 2019 Notes. The additional net of approximately $115.0
million will be used to fund investments in debt and equity
securities in accordance with its investment objective and for
working capital and other general corporate purposes.
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) 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 $6.3
billion to over 360 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 the ticker symbol "HTGC."
In addition, Hercules has three outstanding bond issuances
of:
- 7.00% Unsecured Notes due April 2019
(NYSE: HTGZ)
- 7.00% Unsecured Notes due September
2019 (NYSE: HTGY)
- 6.25% Unsecured Notes due July 2024
(NYSE: HTGX)
Forward-Looking Statements
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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version on businesswire.com: http://www.businesswire.com/news/home/20170125006185/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
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