Hercules Capital Increases and Strengthens Its Capital Resources with New $200.0 Million Credit Facility to Support Continued Investment Portfolio Growth and Expansion Strategy

The Company has replaced its $100.0 million MUFG Union Bank, N.A.
credit facility with a $200.0 million facility, with new participating
commercial banks providing commitments

PALO ALTO, Calif.–(BUSINESS WIRE)–Hercules
Capital, Inc.
(NYSE: HTGC) (“Hercules” or the “Company”) the largest
and leading specialty finance provider to innovative, venture growth
stage companies backed by some of the leading U.S. and top-tier venture
capital and select private equity firms, today announced that effective
February 20, 2019, it has replaced its existing $100.0 million credit
facility with MUFG Union Bank with a new credit facility under which
City National, Umpqua Bank, Hitachi Capital America Corporation and
Mutual of Omaha Bank, together with MUFG Union Bank, have committed a
total of $200.0 million in credit capacity subject to borrowing base,
leverage and other restrictions. The new credit facility also includes
an uncommitted accordion feature of $100.0 million. The interest rate
applicable to borrowings under the new credit facility has been reduced
to LIBOR plus 2.70%. The new credit facility matures in February 2022,
plus a 12-month amortization period. The advance rate under the new
credit facility has been increased to 55% against eligible loans.

“With the completion of our two recent securitizations totaling $450.0
million, the renewal of our Wells Fargo credit facility of $75.0
million, and our new credit facility accordion with MUFG Union Bank, our
combined total potential new liquidity has been greatly enhanced and
will allow us to continue to pursue growth of our investment portfolio.
We are well positioned to take advantage of our growing and robust new
deal pipeline as well as any market dislocations and strategic new
potential opportunities that may present itself,” said Manuel A.
Henriquez, chairman and chief executive officer of Hercules. “With our
new asset coverage ratio increasing our flexibility, we intend to more
actively use our banking credit facilities to grow our investment
portfolio moving forward, along with our access to the securitization
marketplace. We welcome our new commercial bank partners and thank MUFG
Union Bank for their long-standing support of our industry-leading
franchise, and look forward to continuing our long-term relationship.”

For additional information, please review the Company’s current report
on Form 8-K, to be filed with the Securities and Exchange Commission
(“SEC”), which will include the completed transaction documents.

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 $8.2 billion to over
440 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 [email protected],
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 six
outstanding bond issuances of:

Institutional Notes PAR $1000.00

  • 4.625% Notes due 2022

Retail Notes (“Baby Bonds”) PAR $25.00

  • 5.25% Notes due 2025 (NYSE: HCXZ)
  • 6.25% Notes due 2033 (NYSE: HCXY)

Convertible Notes

  • 4.375% Convertible Notes due 2022

Securitization Notes

  • 4.605% Asset-backed Notes due 2027
  • 4.703% Asset-backed Notes due 2028

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.

Contacts

Michael Hara
Investor Relations and Corporate Communications
Hercules
Capital, Inc.
(650) 433-5578
[email protected]

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