Hercules Capital Proudly Receives SBA “Green Light” Letter Approval to Complete its Third SBIC License
September 06 2018 - 5:00AM
Business Wire
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 that the U.S. Small
Business Administration (“SBA”) has issued a "green light" or "go
forth" letter inviting Hercules to finalize its application process
to obtain a license to form and operate a third Small Business
Investment Company ("SBIC") subsidiary, following the Company’s
recent presentation to the SBA committee.
“Our long-standing partnership with the SBIC program remains an
important and strategic component to maintaining a highly liquid
and diversified balance sheet, which enables the Company to fund
the needs of many innovative technology and life sciences companies
seeking growth capital,” said Manuel A. Henriquez, chairman and
chief executive officer of Hercules Capital. “We are extremely
pleased to receive the “green light” approval from the SBA. A third
SBIC license will enable us to continue funding our growth strategy
and helping to reduce our overall blended cost of capital by
accessing favorable long-term financing.”
Upon approval, Hercules will obtain a third SBIC license held by
subsidiaries of the Company and continue to access additional
growth capital of $175.0 million of long-term debentures, bringing
Hercules’ combined borrowing capacity through the SBIC program to a
total of $350.0 million of capital. As a result of the 2016 omnibus
spending bill approved by Congress and signed into law by the
President in December 2017, the recently expanded maximum amount of
SBA-guaranteed debentures that affiliated SBIC funds or “family of
funds” can have outstanding is $350.0 million of debentures, up
from $225.0 million. However, receipt of a green light letter from
the SBA does not assure an applicant that the SBA will ultimately
issue an SBIC license, and Hercules has received no assurance or
indication from the SBA that it will ultimately receive an SBIC
license, or of the timeframe in which it would receive a license,
should one ultimately be granted. Final approval for the additional
$175.0 million is anticipated to occur by the first quarter of
2019.
In addition, Hercules completed the full repayment of $41.2
million outstanding of its first SBIC license, Hercules Technology
II, L.P. on July 13, 2018.
The SBA program has played an important role within Hercules’
funding strategy since receiving its first SBIC license in
September 2006. As a reminder, Hercules has received an exemption
from the Securities and Exchange Commission which allows for the
exclusion of SBIC leverage from BDC regulatory debt to equity
limitations.
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 $8.0
billion to over 430 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
(NYSE) under the ticker symbol "HTGC." In addition, Hercules has
four outstanding bond issuances of 6.25% Notes due 2024 (NYSE:
HTGX), 4.375% Convertible Notes due 2022, 4.625% Notes due October
2022 and 5.25% Notes due 2025 (NYSE: HCXZ).
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180906005200/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578Investor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jul 2023 to Jul 2024