Record Q4 2014 new origination commitments of approximately
2014 year-to-date new origination commitments of approximately
$900.0 million surpasses 2013 commitments of $705.0 million - a 28%
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 energy & renewable
technology, at all stages of development, today announced its Q4 2014
"Hercules completes an impressive sprint to the finish line delivering
another record quarter and year of new originations commitments,
underscoring our leadership position and value we bring to both our
innovative venture growth stage companies and to the venture capital
community as a thriving alternative source of growth capital versus
traditional commercial bank financing, while also demonstrating our
continued focus on growing our market presence," stated Manuel
Henriquez, chairman and chief executive officer of Hercules. "This
achievement would not have been possible if not for our amazing,
dedicated team of investment professionals and our unquestionable brand
recognition and industry reputation as the lender of choice to many of
the leading venture capital backed pre-IPO and M&A companies seeking
growth capital. Our eleven-year track record, coupled with our
outstanding venture capital relationships, and what I consider to be the
industry-leading direct originations platform, continue to afford us
access to deal flow for new originations at unprecedented levels, far
greater than any of our BDC competitors."
Henriquez added, "We are never satisfied with the status quo. We are
committed to continuously improving how we operate and provide growth
capital solutions to the community of innovative venture-backed growth
stage companies we service and will continue to elevate our
differentiated competitive advantage, so that we can create even better
solutions for our current and future partners while delivering
potentially greater shareholder return. We are extremely thankful that
over 300 companies have chosen to select Hercules as their partner for
growth capital, representing nearly $5 billion in capital commitments
since our founding in December 2003."
New Originations for Q4 2014 Totaling Approximately $316.0 million:
As of December 23, 2014, Hercules has originated approximately $316.0
million of debt and equity commitments to new and existing portfolio
Ten (10) new commitments to the following venture growth stage
Technology Portfolio - $138.0 Million
$60.0 million to a mobile advertising-technology company developing
consumer engagement platforms
$38.0 million to online marketplace company servicing the heavy
$25.0 million to the leading technology developer of cloud contact
$15.0 million to a leading technology provider of enterprise email
Life Sciences Portfolio - $150.0 Million
$40.0 million to a clinical-stage biopharmaceutical company developing
infectious diseases treatments
$30.0 million to a leading pharmaceutical company developing therapies
for drug-resistant infections
$29.0 million to a leading biopharmaceutical company developing
directed vaccines and immunotherapies
$20.0 million to a leading medical device company developing cardiac
disease management technology
$18.5 million a medical device company developing advanced implantable
drug delivery systems
$12.5 million to a leading company developing safer and more efficient
drug delivery infusion solutions
In addition, Hercules provided approximately $28.0 million of debt
commitments and renewals to existing portfolio companies.
Record Level Principal Repayments/Early Pay-Offs:
As of December 23, 2014, Hercules received approximately $177.8
million in principal repayments for Q4 2014, of which
approximately $146.5 million were unscheduled early repayments.
Year-to-date, Hercules received approximately $494.5 million in
principal repayments, of which approximately $357.8 million were
unscheduled early repayments.
Portfolio M&A and IPO Activities in Q4 2014:
Eight (8) Portfolio Company Completed M&A Events for Q4 2014:
1. In October 2014, Premiere Global Services, Inc. (NYSE: PGI) completed
its acquisition of Hercules' portfolio company Central Desktop.
Financial terms were not disclosed.
2. In October 2014, Breg, Inc. and Hercules' portfolio company United
Orthopedic Group, Inc. announced they had merged. United Orthopedic
will operate as a wholly-owned subsidiary of Breg, Inc. Financial terms
were not disclosed.
3. In October 2014, InterCloud Systems, Inc. (Nasdaq: ICLD) completed
its acquisition of Hercules' portfolio company VaultLogix, LLC.
The transaction consists of $16 million in cash and $12.75 million in
restricted common stock, of which $11.5 million was valued at $16.50 per
share, with the balance valued at market price, and $15.5 million in
three year convertible seller notes, convertible at a fixed price of
$6.37 per share
4. In October 2014, AVG Technologies (NYSE: AVG) completed its
acquisition of Hercules' portfolio company Location Labs. AVG
will pay approximately $140 million initially, plus up to an additional
approximately $80 million in cash consideration over the next two years
based on the achievement of certain performance metrics and milestones.
5. In October 2014, Hercules' portfolio company Transcept
Pharmaceuticals, Inc. completed its merger with Hercules' portfolio
company Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK) in an
all-stock transaction. Immediately prior to the merger, Paratek received
gross proceeds of $93 million from a combination of current and new
6. In October 2014, General Mills, Inc. (NYSE: GIS) completed its
acquisition of Hercules' portfolio company Annies, Inc. (NYSE:
BNNY). General Mills purchased all issued and outstanding shares of
common stock of Annies, Inc. at a price of $46.00 per share. Hercules no
longer holds investments in the company.
7. In October 2014 and November 2014 respectively, Mavenir Systems
(NYSE: MVNR) announced and completed its acquisition of Hercules'
portfolio company Stoke, Inc. Financial terms were not disclosed.
8. In November 2014, MegaChips Corporation (Tokyo Stock Exchange: 6875)
completed its $200 million cash acquisition of Hercules' portfolio
company SiTime Corporation.
Seven (7) Portfolio Companies Currently in IPO Registration:
As of December 23, 2014, Hercules had warrant and equity positions in
seven portfolio companies that had filed Registration Statements in
contemplation of a potential IPO:
Zosano Pharma, Inc.
Inotek Pharmaceuticals, Inc.
Three companies filed confidentially under the Jobs Act
Two (2) Completed IPO Liquidity Events:
In October 2014, a former Hercules portfolio company Zayo Group
Holdings, Inc. (NYSE: ZAYO) completed its initial public offering
of 24,079,002 shares of its common stock at a price to the public of
$19.00 per share. Hercules currently holds no investments in the
In December 2014, Hercules' portfolio company Neothetics, Inc.
completed its initial public offering of 4,650,000 shares of its
common stock at a price to the public of $14.00 per share.
About Hercules Technology Growth Capital, Inc.
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) is 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 energy &
renewable technology, at all stages of development. Since inception
(December 2003), Hercules has committed more than $4.6 billion to over
300 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@example.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 7.00%
Senior Notes due April 2019, 7.00% Senior Notes due September 2019, and
6.25% Notes due July 2024, which trade on the NYSE under the symbols
"HTGZ," HTGY," and "HTGX," respectively.
Statements in this press release may constitute forward-looking
statements for purposes of the safe harbor protection under applicable
securities laws. Forward-looking statements can be identified by
terminology such as "anticipate," "believe," "could," "estimate,"
"expect," "intend," "is planned," "may," "should," "will," "will
enable," "would be expected," "look forward," "may provide," "would" or
similar terms, variations of such terms or the negative of those terms.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors including, without limitation, those
risks, uncertainties and factors referred to in the "Risk Factors"
section of the Hercules Annual Report on Form 10-K for the year ended
December 31, 2013, as well as the other documents and reports filed by
Hercules with the Securities Exchange Commission. As a result of such
risks, uncertainties and factors, actual results may differ materially
from any future results, performance or achievements discussed in or
implied by the forward-looking statements contained herein. Hercules is
providing the information in this press release as of this date and
assumes no obligations to update the information included in this press
release or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Hercules Technology Growth Capital, Inc.
Michael Hara, 650-433-5578
Relations and Corporate Communications
Ed Keaney, 415-445-3238
Source: Hercules Technology Growth Capital, Inc.
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