Hercules Announces Intention to Partially Redeem its 6.25% Notes Due 2024
October 24 2017 - 5:00AM
Business Wire
Accretive Balance Sheet Management to Save $1.3
Million in Annual Interest and Fee Expenses
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 announced its intent to redeem
approximately $75.0 million (face value) in issued and outstanding
aggregate principal amount of the Company’s 6.25% Notes due 2024
(CUSIP No. 427096862) (the “Notes”), which were issued pursuant to
the indenture dated as of March 6, 2012, between the Company and
U.S. National Bank Association, as trustee, as supplemented by the
third supplemental indenture dated as of July 14, 2014 (the
“Indenture”). The Notes trade on the New York Stock Exchange under
the ticker symbol “HTGX”. The redemption price will be par $25.00
per Note plus accrued and unpaid interest through, but excluding,
the redemption date, November 23, 2017.
The partial redemption of the Notes will result in certain
interest savings if the Notes were otherwise left outstanding
through maturity, but will also accelerate the amortization of
certain underwriting fees resulting in an increase in related
expense in the period the Notes are redeemed. Hercules intends to
make additional redemptions on the Notes throughout the 2018
calendar year, depending on its anticipated cash needs. The Company
will provide notice for and complete all redemptions in compliance
with the terms of the Indenture.
The Notes should be presented and surrendered by mail or by hand
at the office of the Paying Agent, U.S. Bank National Association,
Corporate Trust Services, 111 Fillmore Avenue E, St. Paul, MN
55107. The settlement of the redemption is expected to occur on
November 23, 2017. Questions related to the notice of redemption
and related materials should be directed to U.S. Bank via telephone
at 1-800-934-6802.
The retirement of the $75.0 million Notes, along with the closed
4.625% Investment Grade Notes due 2022 on October 23, 2017, will
save the Company approximately $1.3 million in annual interest and
fee expense (on a cost of funds basis), or $0.02 NII per share
annually, based on the 82.3 million weighted shares outstanding on
June 30, 2017 and excluding the one-time non-cash acceleration and
30-day interest overlap expense of $2.4 million, or $0.03 NII per
share, associated with the redemption of the Notes.
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 $6.9
billion to over 380 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 6.25% Unsecured Notes due July 2024
(NYSE: HTGX), 4.375% Convertible Senior Notes due February 2022 and
4.625% Unsecured Notes due October 2022.
Forward-Looking Statements
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. You should understand that under Section 27A(b)(2)(B) of
the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of
the Securities Exchange Act of 1934, as amended, or the Exchange
Act, the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995 do not apply to forward-looking
statements made in periodic reports we file under the Exchange
Act.
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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Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
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