Hercules Provides Interim Q4 2016 Portfolio Update & Expects to Exceed Its Debt Investment Portfolio Target of $1.35 Billion ...
December 19 2016 - 5:00AM
Business Wire
- Closed total new debt and equity
commitments exceeding $200.0 million to 13 companies including
seven (7) new portfolio companies for Q4 2016
- Total annual 2016 new commitments
anticipated to exceed $800.0 million
- Hercules’ portfolio company FanDuel
Inc. announced strategic merger with sports technology developer
DraftKings, Inc.
- Four (4) Hercules portfolio companies
currently in IPO Registration
- Debt investment portfolio well
positioned for increases in short term interest rates, adding
potentially $0.02 in Net Investment Income earnings annually for
each 25 basis point increase in Prime Rate, based on basic weighted
shares outstanding as of September 30, 2016
Hercules Capital, Inc. (NYSE:HTGC) (“Hercules” or the
“Company”), the leading specialty finance company to innovative
venture growth, pre-IPO and M&A stage companies backed by
leading venture capital firms, today provided its interim portfolio
update for the fourth quarter 2016.
“Our fourth quarter-to-date portfolio activity reflects another
strong quarter of new origination and funding activities, closing
over $200 million of new commitments, adding seven new innovative
venture growth stage technology and life sciences companies, backed
by some of the leading venture capital firms in the U.S., to our
portfolio,” stated Manuel A. Henriquez, chairman and chief
executive officer of Hercules. “Year-to-date 2016, we have closed
over $800 million in new commitments to new and existing portfolio
companies, surpassing our 2015 new commitments of $745 million,
highlighting the success of our origination team in executing our
portfolio growth strategy.”
Henriquez concluded, “In addition, we witnessed several
portfolio companies successfully achieving critical key performance
milestones in the fourth quarter, which unlocked unfunded
commitments, further fueling the growth of our debt investment
portfolio balance. As a result of this strong execution, Hercules
is on a pace to potentially exceed the high end of our desired full
year debt investment portfolio target of $1.35 billion.”
New Debt and Equity Commitments for Q4 2016
As of December 19, 2016, Hercules has originated $203.8
million of new debt and equity commitments to 13 new and existing
portfolio companies.
Thirteen (13) new commitments to innovative venture growth
stage companies:
Technology Portfolio – $82.3
Million
- $25.0 million to FanDuel Inc., a
leading fantasy sports technology company that enables sports
enthusiasts to play fantasy games and win cash prizes
- $25.0 million to Lithium
Technologies Inc., a technology developer that provides
market-leading solutions for building successful online
communities
- $15.0 million to Cloud Technology
Partners, Inc., a technology developer that provides business
services to help migrate IT infrastructure and business
applications to cloud-based delivery systems
- $9.0 million to a technology provider
of search engine and advertising tools for online travel
agencies
- $6.0 million equity investment to
DocuSign, Inc., a leading technology provider that provides
the ability to sign, send and manage documents anytime, anywhere on
any device
- $2.3 million equity investment to
Offer Up, Inc., a technology provider of a mobile
marketplace for families to buy and sell non-used items
Life Sciences Portfolio – $60.0
Million
- $60.0 million to Sorrento
Therapeutics, Inc., an antibody-centric, clinical stage
biopharmaceutical company developing new treatments for cancer,
pain management, inflammation and autoimmune diseases
New Commitments to Existing Portfolio
Companies – $61.5 Million
- $21.0 million to a portfolio company to
support the acquisition of a consumer products company that
develops screen protectors for impact and scratch protection and
privacy
- $10.5 million to Proterra, Inc.,
a designer and manufacturer of heavy-duty vehicles powered solely
by electric batteries
- $10.0 million to Paratek
Pharmaceuticals, Inc., a biopharmaceutical company focused on
the development and commercialization of innovative therapies based
upon its expertise in novel tetracycline chemistry
- $10.0 million to a biopharmaceutical
company that specializes in the research development and
commercialization of prescription ophthalmic pharmaceuticals
- $5.0 million to a software developer
that provides a cybersecurity analytics platform to organizations
that certifies their evolving networks are secure and accelerates
compliance initiatives
- $5.0 million to a fabless semiconductor
company building the world’s fastest field programmable gate
arrays
Unscheduled Early Principal Repayments “Early
Pay-Offs:”
As of December 19, 2016, Hercules received $42.3 million in
unscheduled early principal repayments “early pay-offs.”
Portfolio Company IPO and M&A Activity in Q4
2016:
IPO Activities
1. As of December 19, 2016, Hercules held warrant and equity
positions in four (4) portfolio companies that had filed
Registration Statements in contemplation of a potential IPO,
including:
- Four companies filed confidentially
under the JOBS Act
There can be no assurances that companies that have yet to
complete their IPOs will do so.
M&A Activities
1. In November 2016, Hercules’ portfolio company FanDuel
Inc. announced a merger agreement with sports technology
company DraftKings, Inc. The transaction is expected to close in
2017. Financial terms were not disclosed. The transaction is
subject to customary closing conditions and regulatory
approvals.
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 broad variety of technology, life
sciences and sustainable and renewable technology industries. Since
inception (December 2003), Hercules has committed more than $6.3
billion to over 360 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% Unsecured Notes due April 2019
(NYSE: HTGZ)
- 7.00% Unsecured Notes due September
2019 (NYSE: HTGY)
- 6.25% Unsecured Notes due July 2024
(NYSE: HTGX)
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/20161219005356/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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