- Closed Commitments to Date for Q1
2015 of Approximately $170.0 Million
- Surpasses $5.0 Billion Milestone in
Debt Commitments Since Inception (December 2003)
- Three Completed IPO Liquidity Events
During the Quarter
- Six Hercules Portfolio Companies
Currently in IPO Registration
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 industries, including technology, biotechnology,
life science, and energy & renewable technology, at all stages
of development, today announced its interim Q1 2015 portfolio
update.
“We are off to a strong start in 2015, with approximately $170.0
million in new closed commitments and an equally strong pipeline
rolling into Q2 2015, as we continue to drive towards realizing our
goal of growing our loan investment portfolio by as much as 30% to
50% in 2015, to our year-end target of $1.3 to $1.5 billion,
subject to market conditions,” stated Manuel Henriquez, chairman
and chief executive officer of Hercules.
Henriquez added, “Our origination activity has been very robust
as we continue to see healthy deal flow from our venture capital
partners and from our innovative venture growth stage companies.
However, we continue to see many of these new investments
opportunities closing later and later in the quarter, thereby
lowering our targeted intra-quarter weighted average loan balances,
and pushing out our EPS growth targets by a quarter or two in the
process. In addition, our forecasted early pay-offs, or
prepayments, are materially lower than prior quarters and in-line
with our expectations, which should allow us to grow our loan
investment portfolio and begin to leverage our SG&A
infrastructure investment in anticipation of higher year-end loan
investment portfolio growth and balances. Finally, we continue to
selectively pursue new loan investment opportunities that meet our
credit underwriting standards, as we look to systematically grow
our loan investment portfolio to new records levels in 2015 with
senior secured high quality investments. We remain steadfast in not
trading-off increased credit risk in the quest for higher loan
yields by reaching down the capital structure, and prefer to accept
lower loan yields in lieu of increased credit risk.”
New Originations for Q1 2015:
As of March 16, 2015, Hercules has originated approximately
$170.0 million of debt and equity commitments to new and existing
portfolio companies.
Seven (7) new commitments to the following innovative growth
stage companies:
Technology Portfolio - $36.0
Million
- $25.0 million to a leading technology
provider of message management solutions and services for email
service providers, internet service providers, social networks and
large enterprises
- $11.0 million to a leading technology
developer of high-speed connectivity solutions for data centers,
enterprise and mobile applications
Life Sciences Portfolio - $99.0
Million
- $27.0 million to a development-stage
oncology company focused on developing cancer drugs using its tumor
targeting platform
- $25.0 million to a leading
pharmaceutical company developing novel products utilizing its
proprietary transdermal drug delivery technology
- $20.0 million to a biotechnology
company developing therapeutic antibody-based products
- $15.0 million to a specialty
pharmaceutical company developing proprietary, abuse-prevention
oral products for the treatment of pain
- $12.0 million to a leading medical
device company developing minimally-invasive medical devices for
weight loss
New Investments to Existing Portfolio
Companies - $35.0 Million
- Hercules provided approximately $35.0
million of debt and equity commitments and renewals to existing
portfolio companies.
As of March 16, 2015, Hercules had unfunded debt commitments of
approximately $343.6 million, representing potential future
portfolio growth. Approximately $215.0 million of these unfunded
commitments are contingent upon the portfolio company achieving
certain performance milestones prior to Hercules’ debt commitments
becoming available.
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 intends to continue to institute funding
or performance-based milestone requirements to mitigate risk which
will affect our actual funding levels.
Principal Repayments/Early Pay-Offs:
As of March 16, 2015, Hercules received
approximately $50.5 million in principal repayments,
exclusive of revolver payments, for Q1 2015, of which
approximately $23.0 million were unscheduled early
repayments.
Portfolio IPO Activities in Q1 2015:
IPO Activities
- Six (6) Portfolio Companies
Currently in IPO Registration:
As of March 16, 2015, Hercules had warrant and equity positions
in six portfolio companies that had filed Registration Statements
in contemplation of a potential IPO:
- Good Technology
- ViewRay Incorporated
- Four 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.
Three (3) Completed IPO Liquidity Events:
- In January 2015, Hercules’ portfolio
company, Box, Inc. (NYSE: BOX), completed its initial public
offering. The shares held by Hercules in Box are subject to certain
restrictions that govern the timing of our divestment and may thus
impact our ultimate gain or (loss). In the case of Box, we are
subject to a customary IPO lockup period and are restricted from
selling shares of common stock for approximately six months from
the date of the initial public offering. The potential gain is
subject to the price of the shares when Hercules exits the
investment.
- In January 2015, Hercules’ portfolio
company, Zosano Pharma Corporation (NASDAQ: ZSAN), completed its
initial public offering.
- In February 2015, Hercules’ portfolio
company, Inotek Pharmaceuticals Corporation (NASDAQ: ITEK),
completed its initial public 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 industries, including technology, biotechnology,
life science, and energy & renewable technology, at all stages
of development. Since inception (December 2003), Hercules has
committed more than $4.9 billion to over 310 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% Senior Notes due April 2019, 7.00% Senior 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 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 Securities and Exchange Commission 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 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.Michael
Hara, 650-433-5578 HT-HNInvestor Relations and Corporate
Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Sep 2023 to Sep 2024