Anticipated Result in Annual Interest Expense Savings of $3.0
Million, or $0.04 EPS per annum
Partial Redemption of the Company's 7.00% Senior Unsecured Notes due
in September 2019 is Expected to be Accretive to Net Investment Income
Per Share During 2016
PALO ALTO, Calif.--(BUSINESS WIRE)--
Technology Growth Capital, Inc. (NYSE: HTGC) ("Hercules" or the
"Company"), the leading specialty financing provider to innovative
venture growth stage companies backed by leading venture capital firms,
today announced completion of the previously-announced redemption of
$40.0 million of the $85.9 million in issued and outstanding aggregate
principal amount of the Company's 7.00% Senior Unsecured Notes due
September 2019 (the "Notes")1.
The partial redemption of the Notes will result in an annual interest
expense savings of approximately $3.0 million, prior to a one-time
non-cash expense in the fourth quarter of 2015, attributed to
acceleration of unamortized original debt issuance costs of
approximately $825,000, or $0.01 per share of additional expense during
the quarter. Hercules may elect to complete additional redemptions of
its 7.0% 2019 Notes throughout calendar year 2016, subject to market
conditions and its anticipated liquidity position. The Company will
provide notice for, and complete all, redemptions in compliance with the
terms of the Indenture.
"We continue to be extremely proactive in the management of our overall
capital structure as we work to continue to optimize the Company's
balance sheet, particularly as the interest rate environment changes,"
stated Mark R. Harris, chief financial officer at Hercules. "As rising
interest rates are expected to benefit our net investment income, we are
also opportunistically taking steps to lower our cost of financing on
the right side of the ledger. By actively managing our liquidity and
balance sheet, we continue to further strengthen Hercules' balance sheet
and lower our cost of financing while also generating positive earnings
growth to our investors, despite the one-time, non-cash expense of
approximately $0.01 per share in Q4 2015. The partial retirement of our
7.00% 2019 Notes will become immediately accretive to earnings per share
in 2016 and beyond. The strength of our platform and balance sheet
continues to be one of Hercules' competitive advantages and is a
critical component to supporting our future growth objectives."
About Hercules Technology Growth Capital, Inc.
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) is the leading
specialty finance company focused on providing senior secured venture
growth loans to high-growth, innovative venture capital-backed companies
in the technology, biotechnology, life sciences, healthcare, and energy
& renewable technology industries. Since inception (December 2003),
Hercules has committed more than $5.6 billion to over 325 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 to the Notes which trade on the NYSE under the symbol
"HTGY", Hercules has two outstanding bond issuances of 7.00% Senior
Notes due April 2019 and 6.25% Notes due July 2024, which trade on the
NYSE under the symbols "HTGZ," and "HTGX," respectively.
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
Securities and Exchange Commission 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
Securities and Exchange Commission. 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
1 The Notes were issued pursuant to the indenture (the "Base
Indenture") dated as of March 6, 2012, between the Company and U.S.
National Bank Association, as trustee, as supplemented by the second
supplemental indenture dated as of September 24, 2012 (together with the
Base Indenture, the "Indenture").
View source version on businesswire.com: http://www.businesswire.com/news/home/20151221005282/en/
Hercules Technology Growth Capital, Inc.
Michael Hara, 650-433-5578
Investor Relations and Corporate Communications
Source: Hercules Technology Growth Capital, Inc.
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