Hercules Capital Announces an Investment Grade Bond Offering Totaling $100.0 Million Due 2026
November 04 2020 - 5:03PM
Business Wire
Completes
$50.0 Million of 4.50% Notes due March 2026
Prices $50.0
Million of 4.55% Notes due March 2026
Institutional
Bonds due 2026 initially assigned a BBB+ by Kroll Bond Rating
Agency
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the
“Company”) today announced a private offering totaling $100.0
million in aggregate principal amount of $50.0 million 4.50% Notes
due March 2026 (the “November Notes”) and $50.0 million 4.55% Notes
due March 2026 (the “March Notes”).
The November Notes are unsecured and bear an interest rate of
4.50% per year, payable semiannually and will mature on March 4,
2026, and may be redeemed in whole or in part at any time or from
time to time at the Company’s option at any time plus a premium, if
applicable. The issuance of $50.0 million of the November Notes
occurred on November 4, 2020.
The March Notes are unsecured and bear an interest rate of 4.55%
per year, payable semiannually and will mature in March 2026, and
may be redeemed in whole or in part at any time or from time to
time at the Company’s option at any time plus a premium, if
applicable. The issuance of $50.0 million of the March Notes is
expected to occur in March 2021.
The Company expects to use the net proceeds from this offering
(i) to pay down existing credit facilities, (ii) to fund
investments in debt and equity securities in accordance with its
investment objective, and (iii) for other general corporate
purposes.
Goldman Sachs & Co. LLC was the sole placement agent of this
offering.
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 $11.0
billion to over 520 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. There is no assurance that the offering of the
June Notes will close in June 2020 or at all. Actual events,
including the issuance of the June Notes and the use of proceeds
from the offering of the February Notes and the June Notes may
differ from those described herein. These forward-looking
statements are not guarantees of future events 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/20201104005760/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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