- Q1 2014 Closed Commitments of
~$154.0 million
- 5 Completed IPO Liquidity Events Q1
2014
- 4 Portfolio Companies Currently in
IPO Registration
- 3 Announced or Completed M&A
Liquidity Events Q1 2014
- Repaid outstanding SBA debentures
totaling $34.8 million
Hercules Technology Growth Capital, Inc. (NYSE:HTGC), the
leading specialty finance company focused on providing senior
secured loans to venture capital-backed companies in
technology-related markets, including technology, biotechnology,
life science, and energy & renewable technology industries, at
all stages of development, today announced its Q1 2014 portfolio
update.
“The first quarter has been very positive as Hercules continues
to build on the strong trajectory we set in 2013,” said Manuel A.
Henriquez, co-founder, chairman and chief executive officer of
Hercules. “We are pleased to report that we originated
approximately $154 million in new and existing debt and equity
commitments, including almost $117 million to six new companies.
Additionally, eight portfolio companies have announced or completed
liquidity events, including five IPOs in the life science sector
and we have four additional portfolio companies, including Box,
Inc., in registration for an IPO. It’s been a great start to a new
year.”
New Originations for Q1 2014:
As of March 31, 2014, Hercules has originated approximately
$153.7 million of debt and equity commitments to new and existing
portfolio companies.
Hercules has made new commitments to the following six
companies, assisting in their future growth and development.
- $30.0 million commitment to a
premium subscription on-demand streaming music service with more
than one million members who can listen to more than 20 million
tracks on more than 70 consumer electronics devices, including
connected audio systems like Sonos, smartphones, Android tablets,
MP3 players and connected TVs.
- $25.0 million commitment to a
renewable products company.
- $21.5 million commitment to a
specialty pharma company with oral drug delivery platform
technologies and a late-stage pipeline of controlled release
products for Attention Deficit Hyperactivity Disorder (ADHD).
- $21.0 million commitment to a
startup specialty pharmaceutical company focused on providing
patients with unique products to address unmet medical needs.
- $11.8 million commitment to a
pioneering educational game developer that publishes entertaining
and award-winning mobile and web products for children.
- $7.5 million commitment to a
fabless semiconductor company that makes highly-integrated
application targeted ICs for consumer audio and voice
applications.
In addition, Hercules provided approximately $36.9 million of
debt and equity commitments and renewals to existing portfolio
companies.
It is important to note that certain commitments may expire
without being drawn upon, and commitments do not necessarily
represent future cash requirements or future earning assets for
Hercules. Our commitments may include conditions, such as reaching
certain milestones, before the Hercules debt commitment would
become available. Hercules is instituting more funding or
performance based milestone requirements to mitigate risk which
will affect our actual funding levels.
Principal Repayments:
As of March 31, 2014, Hercules received
approximately $131.0 million in principal repayments, of
which approximately $87.0 million were unscheduled early
repayments.
SBA Debentures:
In February 2014, Hercules repaid outstanding SBA debentures
totaling $34.8 million. These debentures were originally issued
March 26, 2008, carried a combined interest rate and annual charge
of 6.38% and were scheduled to retire March 1, 2018. Subsequent to
this repayment, total SBA debentures outstanding amounted to $190.2
million.
Portfolio Company Liquidity Events for Q1 2014:
As of March 31, 2014, eight (8) Hercules portfolio companies
have announced or completed liquidity events, such as an IPO or
M&A event.
M&A
1. In January 2014, Toshiba Corporation completed its
acquisition of Hercules portfolio company OCZ Technology.
The acquisition resulted in full repayment of the Hercules debt
investment in OCZ Technology.
2. In February 2014, Teva Pharmaceutical Industries Ltd.
(NYSE:TEVA) completed its acquisition of Hercules portfolio company
NuPathe Inc. (NASDAQ:PATH) at a price of $3.65 per share in
cash and the right to receive contingent cash consideration
payments of up to $3.15 per share, net to the seller in cash
without interest.
3. In March 2014, InterCloud Solutions, Inc. (NASDAQ: ICLD)
announced that it has entered into a definitive agreement to
acquire Hercules’ portfolio company VaultLogix, LLC.
Financial terms were not disclosed and the transaction is subject
to customary closing conditions.
Completed IPOs
As of March 31, 2014, five (5) of Hercules' portfolio companies
completed an IPO:
1. In January 2014, Dicerna Pharmaceuticals, Inc.
(NASDAQ:DRNA) completed its initial public offering of 6,900,000
shares of its common stock at $15.00 per share.
2. In February 2014, Revance Therapeutics, Inc.
(NASDAQ:RVNC) completed its initial public offering of 6,900,000
shares of its common stock at $16.00 per share.
3. In February 2014, Concert Pharmaceuticals, Inc.
(NASDAQ:CNCE) completed its initial public offering of 6,000,000
shares of its common stock at $14.00 per share.
4. In February 2014, Uniqure B.V. (NASDAQ:QURE) completed
its initial public offering of 5,400,000 shares of its common stock
at $17.00 per share.
5. In March 2014, Everyday Health Inc. (NYSE:EVDY)
completed its initial public offering of 7,150,000 shares of its
common stock at $14.00 per share.
Current Companies in IPO Registration:
As of March 31, 2014, Hercules had warrant positions in four (4)
portfolio companies that had filed Registration Statements in
contemplation of a potential IPO:
- Box, Inc.
- Three companies filed confidentially
under the Jobs Act
There can be no assurances that these companies will complete
their IPOs in a timely manner or at all.
About Hercules Technology Growth Capital, Inc.:
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) is the
leading specialty finance company focused on providing senior
secured loans to venture capital-backed companies in
technology-related markets, including technology, biotechnology,
life science, and energy & renewable technology industries, at
all stages of development. Since inception (December 2003),
Hercules has committed more than $4.2 billion to over 270 companies
and is the lender of choice for entrepreneurs and venture capital
firms seeking growth capital financing.
Hercules’ common stock trades on the New York Stock Exchange
under the ticker symbol “HTGC.”
In addition, Hercules has two outstanding bond issuances of 7.00
percent Senior Notes due 2019—the April 2019 Notes and September
2019 Notes—which trade on the NYSE under the symbols “HTGZ” and
“HTGY,” respectively.
Companies interested in learning more about financing
opportunities should contact info@htgc.com, or call
650.289.3060.
Forward-Looking Statements:
Statements in this press release may constitute forward-looking
statements for purposes of the safe harbor protection under
applicable securities laws. Forward-looking statements can be
identified by terminology such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “intend,” “is planned,” “may,” “should,”
“will,” “will enable,” “would be expected,” “look forward,” “may
provide,” “would” or similar terms, variations of such terms or the
negative of those terms. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors including,
without limitation, those risks, uncertainties and factors referred
to in the “Risk Factors” section of the Hercules Annual Report on
Form 10-K for the year ended December 31, 2013, as well as the
other documents and reports filed by Hercules with the Securities
Exchange Commission. As a result of such risks, uncertainties and
factors, actual results may differ materially from any future
results, performance or achievements discussed in or implied by the
forward-looking statements contained herein. Hercules is providing
the information in this press release as of this date and assumes
no obligations to update the information included in this press
release or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Hercules Technology Growth Capital, Inc.Main,
650-289-3060info@htgc.comorMarket Street PartnersEd Keaney,
415-445-3236ekeaney@marketstreetpartners.com
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jul 2023 to Jul 2024