Hercules Capital Acquires Venture Lending Portfolio Assets for ~$125.0 Million
November 02 2017 - 6:00AM
Business Wire
- Transaction reinforces Hercules’
position as the leading and largest venture-focused business
development company
- New assets are expected to be
immediately accretive to HTGC’s earnings
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 that it has entered
into a definitive asset purchase agreement with Ares Capital
Corporation (NASDAQ:ARCC) to acquire select venture loan assets for
approximately $125.0 million. The all-cash transaction is expected
to reinforce Hercules Capital’s position as the largest venture
lending business development company in the United States, with
total assets in excess of $1.5 billion.
Commenting on the transaction, Manuel A. Henriquez, founder,
chairman and chief executive officer said, “The opportunity to
acquire this high-quality venture loan portfolio bolsters our own
growing venture loan portfolio. This strategic acquisition coupled
with our continued focus to our ‘slow and steady’ growth strategy,
will help to further deliver growth in our total assets and net
investment income, for the benefit of our shareholders. The
portfolio acquisition demonstrates our continuous efforts to expand
our growing market leadership presence within the venture lending
marketplace while enhancing our overall investment loan portfolio
through a disciplined growth strategy predicated on maintaining and
expanding our industry-leading, highly differentiated venture
lending platform.”
Mr. Henriquez concluded, “This transaction, along with our
recently completed, and upsized, inaugural investment grade
institutional bond offering of $150.0 million in aggregate
principal amount of 4.625% Notes due 2022, further demonstrates
Hercules Capital’s continued efforts to lower our overall financing
costs, while growing our loan portfolio and optimizing our balance
sheet. With a highly liquid balance sheet, moderate regulatory
leverage, and continued access to both the debt and equity capital
markets through our accretive ‘At-the-Market’ (“ATM”) programs, we
expect to continue to canvas the market for additional acquisition
opportunities that are accretive to the company, particularly at a
time when we expect there to be further consolidation within the
industry.”
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 $6.9
billion to over 380 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
under the ticker symbol "HTGC." In addition, Hercules has
outstanding 6.25% Notes due 2024 (NYSE: HTGX), 4.375% Convertible
Notes due 2022, and 4.625% Notes due 2022.
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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version on businesswire.com: http://www.businesswire.com/news/home/20171102005367/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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