Hercules Announces the Second Closing of its 6.25% Notes Due 2024 Offering of $60.0 Million
June 27 2016 - 1:00PM
Business Wire
- Proceeds from offering provide new
liquidity to support continued execution of its portfolio and
earnings growth strategy
- Combined 6.25% Notes due 2024
offerings, BBB- rating by Standard & Poor’s Ratings Services
and BBB+ by Kroll Bond Rating Agency
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the
“Company”) today announced that on June 27, 2016, it closed its
second underwritten offering of an additional $60.0 million in
aggregate principal amount, excluding offering costs, of its 6.25%
unsecured notes due 2024 (the “Notes”). The Notes constitute a
further issuance of, rank equally in right of payment with, and
form a single series with an aggregate principal amount of $175.9
million of the 6.25% unsecured notes due 2024 that the Company
initially issued on July 14, 2014 and subsequently on May 2, 2016
(the “Existing Notes”). The underwriters have the option to
exercise their option to purchase an additional $9.0 million in
aggregate principal amount of Notes to cover over-allotments, which
may bring the total size of the offering to $69.0 million.
The Notes will trade with the Existing Notes on the New York
Stock Exchange under the symbol “HTGX.”
The Company intends to invest the net proceeds of this public
notes offering to fund the Company's investments in debt and equity
securities in accordance with its investment objective and for
other general corporate purposes.
“We are very pleased to see the outstanding results achieved by
our recent bond offering securing $60 million in additional
liquidity and of the strong performance and execution of our high
quality underwriters syndicate,” stated Manuel A. Henriquez,
chairman and chief executive officer of Hercules. “The offering
generated extremely strong investor demand in advance of the BREXIT
developments.”
Henriquez continued, “The additional proceeds will enable us to
bolster our balance sheet liquidity and more importantly, allows us
to continue to grow our investment portfolio and earnings. We
continue to take a measured approach to growth by managing both
sides of our balance sheet based on pursuing targeted new
investment yields, market conditions and demand. In addition, we
are also pleased to have a BBB- and BBB+ credit ratings from
Standard & Poor’s and Kroll Bond Rating Agency, respectively.
These ratings further validate our excellent credit quality, our
conservative underwriting strategy and unique investment
approach.”
The Existing Notes and the Notes will mature on July 30, 2024,
and may be redeemed in whole or in part at any time or from time to
time at the Company's option on or after July 30, 2017. The Notes
will bear interest at a rate of 6.25% per year payable quarterly on
January 30, April 30, July 30 and October 30, of each year,
beginning July 30, 2016. The Existing Notes and the Notes have been
assigned a BBB+ rating by the Kroll Bond Rating Agency and a BBB-
rating by Standard & Poor’s.
Keefe, Bruyette & Woods, A Stifel Company, Morgan Stanley
and Wells Fargo Securities are acting as joint book-running
managers of this offering. Janney Montgomery Scott is acting as a
lead manager of this offering. BB&T Capital Markets, JMP
Securities, Ladenburg Thalmann, Piper Jaffray and Wunderlich are
acting as co-managers of this offering.
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 broadly diversified variety of
technology, life sciences and sustainable and renewable technology
industries. Since inception (December 2003), Hercules has committed
more than $5.9 billion to over 350 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 three
outstanding bond issuances of 7.00% Notes due April 2019, 7.00%
Notes due September 2019, and 6.25% Notes due July 2024, which
trade on the NYSE under the symbols “HTGZ,” HTGY,” and “HTGX,”
respectively.
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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Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
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