Hercules Capital Receives SBA “Green Light” Letter Approval to Complete Its Third SBIC License
June 08 2020 - 6:00AM
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, today announced that the U.S. Small Business
Administration (“SBA”) has issued a “green light” or “go forth”
letter inviting Hercules to finalize its application process to
obtain a license to form and operate a third Small Business
Investment Company (“SBIC”) subsidiary, following the Company’s
recent presentation to the SBA committee.
“We are extremely pleased to receive the ‘green light’ approval
from the SBA. Our long-standing partnership with the SBIC program
remains an important and strategic component to maintaining a
highly liquid and diversified balance sheet and it provides us with
further flexibility to be able to continue to support small and
growth oriented businesses including those that are minority, women
or veteran owned or managed,” said Scott Bluestein, chief executive
officer and chief investment officer of Hercules Capital. “A third
SBIC license will enable us to continue to fund the needs of many
innovative technology and life sciences companies seeking growth
capital financing which is particularly important in the current
economic environment. This third license will also provide us with
favorable long-term financing further enhancing our already strong
liquidity position in a cost-effective manner.”
Upon approval, Hercules will obtain a third SBIC license held by
subsidiaries of the Company and continue to access additional
growth capital of $175.0 million of long-term debentures, bringing
Hercules’ combined borrowing capacity through the SBIC program to a
total of $285.3 million of capital. However, receipt of a green
light letter from the SBA does not assure an applicant that the SBA
will ultimately issue an SBIC license, and Hercules has received no
assurance or indication from the SBA that it will ultimately
receive an SBIC license, or of the timeframe in which it would
receive a license, should one ultimately be granted. Final approval
for the additional $175.0 million is anticipated to occur by the
fourth quarter of 2020.
The SBA program has played an important role within Hercules’
funding strategy since receiving its first SBIC license in
September 2006. Hercules received an exemption from the Securities
and Exchange Commission that allows for the exclusion of SBIC
leverage from BDC regulatory debt to equity limitations.
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 $10.2
billion to over 500 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 ticker symbol HTGC. In addition, Hercules has two
retail bond issuances of 5.25% Notes due 2025 (NYSE: HCXZ) and
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. 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/20200608005093/en/
Michael Hara Investor Relations and Corporate Communications
Hercules Capital, Inc. (650) 433-5578 mhara@htgc.com
Hercules Capital (NYSE:HTGC)
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