Hercules Closes Public Offering of $65.4 Million and $7.5 Million Over-allotment of 6.25% Notes Due 2024
May 03 2016 - 5:00AM
Business Wire
Proceeds from offering provide new liquidity
to support continued execution of its portfolio and earnings growth
strategy
6.25% Notes due 2024 assigned 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 May 2, 2016, it closed its underwritten
offering of an additional $65.4 million in aggregate principal
amount 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 the $103 million in
aggregate principal amount of the 6.25% unsecured notes due 2024
that the Company initially issued on July 14, 2014 (the “Existing
Notes”). The underwriters exercised their option to purchase $7.5
million in aggregate principal amount of Notes to cover
over-allotments, bringing the total size of the offering to $72.9
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 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 have completed this bond offering and
once again successfully accessed the debt capital markets,” stated
Manuel A. Henriquez, chairman and chief executive officer of
Hercules. “We believe this offering will enable us to enhance our
balance sheet liquidity and grow our investment portfolio. In
addition, we are also pleased to receive 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. The Notes
were also assigned a BBB- rating by Standard & Poor’s in
conjunction with the additional offering.
Keefe, Bruyette & Woods, A Stifel Company, Jefferies, and
RBC Capital Markets, LLC are acting as joint book-running managers
of this offering. Sandler O’Neill & Partners, L.P. is acting as
a lead manager of this offering. BB&T Capital Markets and
Janney Montgomery Scott 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
$5.9 billion to 349 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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version on businesswire.com: http://www.businesswire.com/news/home/20160503005704/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
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