Year-to-date new originations of approximately $377.0 million
Portfolio company Trulia (NYSE: TRLA) completes its IPO
Four portfolio companies in IPO registration as of September 30,
Senior notes and equity offering enhance Hercules' balance sheet
and liquidity position for portfolio growth
PALO ALTO, Calif.--(BUSINESS WIRE)--
Technology Growth Capital, Inc. (NYSE: HTGC), the leading specialty
finance company focused on providing senior secured loans to venture
capital-backed companies in technology-related markets, including
technology, biotechnology, life science and cleantech industries, at all
stages of development today announced its Q3 2012 portfolio update. This
portfolio update follows the interim Q3 quarter-to-date update issued on
September 11, 2012.
"Against a backdrop of continued strong demand for venture debt during
the third quarter, Hercules originated a number of new debt commitments
to innovative portfolio companies, the vast majority of which were late
in the quarter (September), despite continued global economic
uncertainty and the upcoming U.S. elections," said Manuel A. Henriquez,
Hercules co-founder, chairman and chief executive officer. "In addition,
we took significant steps to bolster and strengthen our balance sheet,
adding well over $100 million in additional liquidity through a
diversified mix of senior note and equity offerings, which will support
portfolio growth for the fourth quarter of 2012 and beyond."
Additional New Originations for Q3:
During the third quarter of 2012, Hercules originated approximately
$136.0 million of debt and equity commitments to new and existing
portfolio companies. As previously announced, Hercules had originated
commitments of more than $93.0 million to new and existing portfolio
companies from July 1, 2012 to September 11, 2012.
New third quarter investment commitments, completed since September 11,
$25.0 million commitment to Lanx, a privately held medical
device company focused on developing and commercializing innovative
devices for spinal surgery.
$10.0 million commitment to US HIFU, a privately held
healthcare company and a world leader in minimally invasive,
high-intensity focused ultrasound (HIFU) technologies.
$3.0 million commitment to JackBe, a leading provider of
Real-Time Operational Intelligence software, a new emerging segment of
In addition, during this period, Hercules provided $5.4 million in
commitments to existing portfolio companies. Together with the
previously announced commitments to existing portfolio companies of
approximately $25.0 million from July 1, 2012 to September 11, 2012,
Hercules provided a total of approximately $30.4 million in commitments
to existing portfolio companies as of September 30, 2012.
Signed Term Sheets - Additional Future Portfolio Growth Potential:
As of September 30, 2012, Hercules has approximately $133.5 million of
signed non-binding term sheets subject to completion of definitive
documentation with prospective portfolio companies, which generally
convert to contractual commitments within approximately 45 to 60 days.
Non-binding term sheets are subject to completion of Hercules' due
diligence, investment committee approval, legal review and negotiation
of definitive documentation. It is important to note not all signed,
non-binding term sheets are expected to close and do not necessarily
represent any future cash requirements or earning assets.
One Portfolio Company Completes IPO:
On September 20, 2012, portfolio company Trulia completed
its IPO and its shares are trading on the New York Stock Exchange (NYSE)
under the symbol "TRLA."
Current Companies in IPO Registration and Existing Warrant Portfolio:
As of September 30, 2012, Hercules had warrant positions in more than
115 different technology, life science and cleantech companies, and four
portfolio companies had filed Form S-1 Registration Statements in
contemplation of a potential IPO:
1. iWatt, Inc.
2. Glori Energy, Inc.
3. Paratek Pharmaceuticals, Inc.
4. One company filed a Form S-1 Registration Statement confidentially
under the JOBS Act.
There can be no assurances that these companies will complete their IPOs
in a timely manner or at all.
Capital Raising Activities:
During the quarter, Hercules closed a public offering of approximately
$85.0 million in aggregate principal amount of its 7.00 percent Senior
Unsecured Notes due 2019. The September 2019 Notes trade on the New York
Stock Exchange under the new trading symbol "HTGY."
On October 3, 2012, Hercules closed a public offering of 3.1 million
shares of common stock at a price of $10.85 per share, resulting in
proceeds of approximately $33.6 million, excluding other offering
About Hercules Technology Growth Capital, Inc.:
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) ("Hercules"), is a
leading specialty finance firm providing loans to technology-related
companies, including technology, life science and cleantech industries
at all stages of development. Since inception (December 2003), Hercules
has committed more than $3.0 billion to more than 210 companies and is
the lender of choice for entrepreneurs and venture capital firms seeking
growth capital financing.
Hercules' common stock trades on the New York Stock Exchange (NYSE)
under the ticker symbol "HTGC."
In addition, Hercules has two outstanding bond issuances of 7.00 percent
Senior Unsecured Notes due 2019, which trade on the NYSE under the
symbols "HTGZ" and "HTGY."
Companies interested in learning more about financing opportunities
should contact email@example.com, or call
The statements contained in this release that are not purely historical
are forward-looking statements. 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 turbulence, and other factors we identify
from time to time in our filings with the Securities and Exchange
Commission. Although we believe 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.
Hercules Technology Growth Capital, Inc.
Main, 650-289-3060 HT-HN
Merrill Freund or Lauren Whitehouse, 415-512-0770
Source: Hercules Technology Growth Capital, Inc.
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