Hercules Capital Completes $250.0 Million Securitization to Support Continued Growth
January 22 2019 - 1:42PM
Business Wire
Issued $250.0 Million of Class A Notes Rated
A(sf) by KBRA
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the
“Company”) today announced that Hercules Capital Funding Trust
2019-1, a newly-formed wholly owned, indirect subsidiary of
Hercules, has issued $250.0 million of class A notes (the “Notes”)
rated A(sf) by Kroll Bond Rating Agency, Inc. (“KBRA”) backed by
approximately $357.2 million of senior secured loans. Guggenheim
Securities, LLC acted as arranger of the Notes, Wells Fargo
Securities, LLC and MUFG Securities Americas Inc. acted as
co-managers, and Hercules is the sponsor, originator and servicer
for the transaction. The Notes bear interest at a fixed rate of
4.703%. The Notes have a stated maturity date of February 22, 2028,
and an expected weighted average life of 3.38 years.
“With the closing of this securitization, we continue to
diversify our capital structure and optimize our balance sheet with
new sources of lower cost, longer term and flexible financing,”
said Manuel A. Henriquez, chairman and chief executive officer of
Hercules. “With our recent shareholder approval to lower our asset
coverage ratio from 200% to 150%, we are prudently optimizing our
capital raises to help us continue to execute on our proven venture
lending investment strategy and achieve our portfolio growth
targets in 2019. We welcome our new noteholders and thank them for
their support of our industry leading business.”
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 $8.2
billion to over 440 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
seven outstanding bond issuances of 6.25% Notes due 2024 (NYSE:
HTGX), 4.375% Convertible Notes due 2022, 4.625% Notes due 2022,
5.25% Notes due 2025 (NYSE: HCXZ), 6.25% Notes due 2033 (NYSE:
HCXY), 4.605% Asset-backed Notes due 2027, and 4.703% Asset-backed
Notes due 2028.
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: https://www.businesswire.com/news/home/20190122005810/en/
Michael HaraInvestor Relations and Corporate
CommunicationsHercules Capital, Inc.(650)
433-5578mhara@htgc.com
Hercules Capital (NYSE:HTGC)
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