Closed Commitments to Date for Q3 2014 Total Approximately
Six Hercules Portfolio Companies File IPO Registrations
Three Portfolio Companies Achieve Liquidity through Announced or
Completed M&A Events
PALO ALTO, Calif.--(BUSINESS WIRE)--
Technology Growth Capital, Inc. (NYSE: HTGC), the largest 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 industries, at all stages of development, today announced its
Q3 2014 portfolio update.
"The strong origination activity in the third quarter puts Hercules on
track to achieve annual new commitments of approximately $700-$850
million for 2014, subject to market conditions," said Manuel A.
Henriquez, chairman and chief executive officer of Hercules. "This
growth is fueled by our strong reputation and brand recognition coupled
with our ability to work in concert with entrepreneurs and their venture
capital sponsors by providing creative and flexible financing solutions.
"The high quality of our investment portfolio of innovative
top-tier-backed venture capital companies is also borne out by the
number of liquidity events, including IPOs and M&A events, we are seeing
through the third quarter of 2014," Henriquez continued. "This is a
clear testament to the team's ability to identify, and then work closely
with, some of the most promising companies in the technology-related
sectors we cover."
New Originations for Q3 2014:
As of September 29, 2014, Hercules has originated approximately $147.0
million of debt commitments to new and existing portfolio companies.
Hercules has made new commitments to the following eight companies,
assisting in their future growth and development.
$26.0 million commitment to a clinical-stage biotechnology
company focused on gene therapy for the treatment of heart failure.
$20.0 million commitment to an advertising-technology company
specializing in mobile advertising monetization.
$20.0 million commitment to a leading provider of Smart
Organization Systems for the small business and home markets.
$18.5 million commitment to a leader in cloud and mobile
testing and real user monitoring.
$12.5 million commitment to an ophthalmic medical device and
pharmaceutical company advancing the science of corneal collagen
cross-linking and refractive correction.
$10.0 million commitment to a clinical-stage biotechnology
company developing novel, hospital-based therapies for the management
of acute, life-threatening neurological conditions.
$8.5 million commitment to a biopharmaceutical company
developing innovative treatments for nervous system disorders.
$150 thousand commitment to a mobile content delivery and sales
enablement technology company.
In addition, Hercules provided approximately $31.3 million of debt and
equity commitments and renewals to existing portfolio companies.
It is important to note that certain commitments may expire without
being drawn upon, and commitments do not necessarily represent future
cash requirements or future earning assets for Hercules. Our commitments
may include conditions, such as reaching certain milestones, before the
Hercules debt commitment would become available. Hercules is instituting
more funding or performance-based milestone requirements to mitigate
risk which will affect our actual funding levels.
Hercules continued its previously announced efforts to selectively prune
and rebalance its investment portfolio. As of September 29, 2014,
Hercules received approximately $114.2 million in principal repayments,
of which approximately $82.2 million were unscheduled, early repayments.
Portfolio Company Liquidity Events for Q3 2014:
In July 2014, Hercules' portfolio company Transcept
Pharmaceuticals, Inc. (Nasdaq: TSPT) and Hercules' portfolio
company Paratek Pharmaceuticals, Inc. entered into a
definitive merger agreement under which the stockholders of Paratek
will become the majority owners of Transcept and the operations of
Transcept and Paratek will be combined.
In August 2014, Roper Industries Inc. (NYSE: ROP) acquired Hercules'
portfolio company IPA, LLC. This liquidity event represents a
net gain of approximately $1.5 million, an internal rate of return of
approximately 18.5% (excluding proceeds in escrow), and a gross
multiple of approximately 3.0x on Hercules total investment in this
In September 2014, AVG Technologies (NYSE: AVG) announced that it had
entered into a definitive agreement to acquire Hercules' portfolio
company Location Labs. Under the terms of the agreement, 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
Current Companies in IPO Registration:
As of September 29, 2014, Hercules had warrant and equity positions in
six (6) portfolio companies that had filed Registration Statements in
contemplation of a potential IPO:
Dance Biopharm, Inc.
Zosano Pharma, Inc.
Two companies filed confidentially under the Jobs Act
There can be no assurances that these companies will complete their IPOs
in a timely manner or at all.
About Hercules Technology Growth Capital, Inc.:
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) ("Hercules") 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 industries, at all stages of development. Since
inception (December 2003), Hercules has committed more than $4.4 billion
to over 290 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 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.
Companies interested in learning more about financing opportunities
should contact email@example.com, or call
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.
Main, 650-289-3060 HT-HN
Ed Keaney, 415-445-3238
Source: Hercules Technology Growth Capital, Inc.
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