Hercules Closes Public Offering of 6.25% Notes Due 2024
August 01 2014 - 3:22PM
Business Wire
Proceeds from offering expected to propel
growth as Company converts new liquidity into new loans for
innovative companies
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (the
“Company, 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,
today announced that on July 14, 2014 it closed its underwritten
public offering of $100 million in aggregate principal
amount of its 6.25% notes due 2024 (the “Notes”) The Company has
listed the Notes on the New York Stock Exchange under the trading
symbol “HTGX.”
The Company intends to invest the net proceeds of this public
offering to fund the Company’s investments in debt and equity
securities in accordance with its investment objective and for
other general corporate purposes. In addition, the Company may also
use the net proceeds from the offering to fund the conversion of
some or all of its outstanding 6.00% convertible notes due 2016
which select holders have elected to convert and remaining holders
may elect to convert.
“We are very pleased to have completed what is our third bond
offering and once again successfully accessed the debt capital
markets,” said Hercules Co-founder, Chairman and Chief Executive
Officer, Manuel Henriquez. “We believe this offering will enable us
to lower our overall cost of financing, enhance our balance sheet
liquidity, and position us for continued earnings growth, as we
intend to convert net offering proceeds into new investments.”
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, 2014. The
offering was assigned a BBB+ rating by the Kroll Bond Rating
Agency.
Keefe, Bruyette & Woods, Inc., Jefferies LLC, and RBC
Capital Markets, LLC are acting as joint book-running managers of
this offering. BB&T Capital Markets, a division of BB&T
Securities, LLC, Janney Montgomery Scott LLC, JMP Securities LLC
and Sterne, Agee & Leach, Inc. are acting as co-managers of
this offering.
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.
In addition to the Notes, Hercules has two outstanding bond
issuances of 7.00% 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
The statements contained in this release that are not purely
historical are forward-looking statements. 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
turbulence, and other factors we identify from time to time in our
filings with the Securities and Exchange Commission. Although we
believe 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.
Hercules Technology Growth Capital, Inc.Main, 650-289-3060
HT-HNinfo@htgc.comorMarket Street
PartnersEd Keaney, 415-445-3238ekeaney@marketstreetpartners.com
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