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
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
PALO ALTO, Calif.--(BUSINESS WIRE)--
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
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
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
$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
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
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
$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:
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.
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 firstname.lastname@example.org,
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)
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: http://www.businesswire.com/news/home/20161219005356/en/
Hercules Capital, Inc.
Michael Hara, 650-433-5578 HT-HN
Relations and Corporate Communications
Source: Hercules Capital, Inc.
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