Closed New Debt and Equity Commitments for Q1 2016 of $220.9 Million
Fourteen (14) New Commitments to a Broad Variety of Technology,
Life Sciences and Sustainable & Renewable Innovative High-Growth
Materially Lower Unscheduled Principal Repayments "Early Pay-offs"
for Q1 2016 of $55.0 Million
Four (4) Hercules Portfolio Companies Currently in IPO Registration
PALO ALTO, Calif.--(BUSINESS WIRE)--
Capital, Inc. (NYSE:HTGC) ("Hercules" or the "Company"), the leading
specialty financing provider to innovative venture growth, pre-IPO and
M&A stage companies backed by leading venture capital firms, today
provided its portfolio update for Q1 2016.
"I am delighted to see our organization's continued execution at all
levels, as we pursue our controlled growth by adhering to our ‘slow and
steady' strategy, and march towards our plan of growing our investment
loan portfolio by approximately $200 million in the first half of 2016
to a loan portfolio valued between $1.25 to $1.3 billion, subject to
market conditions," stated Manuel A. Henriquez, chairman and chief
executive officer of Hercules. "We are off to a great start in 2016,
with over $220 million in new commitments, and with an equally strong
pipeline of potential deals of over $1.1 billion extending into Q2 2016.
We have also been working hard at increasing our access to additional
liquidity for growth through the expansion of our Wells Fargo accordion
credit facility. With an additional $45.0 million from Alostar Bank of
Commerce and EverBank, we continue to methodically convert our strong
liquidity position into new interest-earning loans to innovative venture
growth stage companies, ultimately driving potential earnings growth and
dividend coverage expected to occur in the second half of 2016 as
planned, subject to market conditions."
New Debt and Equity Commitments for Q1 2016
As of March 31, 2016, Hercules has originated $220.9 million of debt and
equity commitments to new and existing portfolio companies.
Fourteen (14) new commitments to innovative venture growth stage
Technology Portfolio - $62.5 Million
$15.0 million to a technology developer of cloud application
authentication and identity management
$4.0 million to a consumer consignment retailer of women's designer
clothing, shoes and accessories
$15.0 million to a technology developer operating an automated B2C CRM
platform for small and medium businesses, tracking various aspects of
marketing from directory and social profile management to in-store
behavior and customer purchases
$8.5 million to a technology-based sourcing and procurement company
developing customized solutions for the procurement of printed
materials and related commodities and services
$15.0 million to a technology media content developer that allows its
members to read and share e-books on the Web and on mobile devices
$5.0 million to a software developer enabling collaborative
development production and analysis of software and products in real
time on individual and cloud environments
Life Sciences Portfolio - $117.0 Million
$20.0 million to a clinical stage biopharmaceutical company focused on
discovering and developing novel cellular immunotherapies for various
forms of cancer, including both hematological and solid tumors, as
well as orphan inherited blood disorders
$15.0 million to a development-stage company focused on the
acquisition, development and commercialization of innovative drug
therapies for the treatment of skin diseases
$40.0 million to a biopharmaceutical company in the development of
oncology drugs, using its tumor-targeting linker system to improve the
therapeutic index of known anti-cancer agents
$10.0 million to a biopharmaceutical company developing a new class of
immunomodulatory and gene slicing drugs against validated targets
$12.0 million to a cardiovascular company that develops drug-delivery
$20.0 million to a developer of medical devices designed to provide
advanced haemodialysis solutions for use in the clinic and the home
Sustainable and Renewable Technology Portfolio
- $25.0 Million
$10.0 million to a developer and licensor of materials-based solutions
for catalytic and separations processes based on proprietary
technology licensed from the Massachusetts Institute of Technology
$15.0 million to a developer of technology to create and improve
metabolic pathways for the production of adipic acid and ethanol
New Investments to Existing Portfolio Companies
- $16.4 Million
As of March 31, 2016, the Company had $162.7 million of total unfunded
commitments, however, only $64.7 million of unfunded commitments,
including undrawn revolving facilities, were available at the request of
the portfolio company and unencumbered by any milestones.
In addition, we had $98.0 million of various specific milestone
requirements to be achieved by select portfolio companies or other
covenant restrictions limiting availability of those commitments, many
of which are expected to require milestones that may be greater than one
year or more in the future before becoming available.
The Company's unfunded commitments and contingencies consist primarily
of unused commitments to extend credit in the form of loans to select
Company's portfolio companies. A portion of these unfunded contractual
commitments are dependent upon the portfolio company reaching certain
milestones in order to gain access to additional funding. Furthermore,
our credit agreements contain customary lending provisions that allow us
relief from funding obligations for previously made commitments. In
addition, since a portion of these commitments may also expire without
being drawn, unfunded contractual commitments do not necessarily
represent future cash requirements.
Scheduled and Unscheduled Principal Repayments "Early
As of March 31, 2016, Hercules received $76.4 million in total principal
repayments, of which $55.0 million was unscheduled early repayments.
Portfolio IPO and M&A Activity in Q1 2016:
1. As March 31, 2016, Hercules held warrant and equity positions in four
(4) portfolio companies that had confidentially filed Form S-1
Registration Statements under the JOBS Act with the SEC in contemplation
of a potential IPO.
There can be no assurances that companies that have yet to complete
their IPOs will do so.
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 broadly diversified variety of technology, life sciences
and sustainable and renewable technology industries. Since inception
(December 2003), Hercules has committed $5.9 billion to 349 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%
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.
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/20160411005324/en/
Hercules Capital, Inc.
Michael Hara, 650-433-5578 HT-HN
Relations and Corporate Communications
Source: Hercules Capital, Inc.
News Provided by Acquire Media