Hercules Announces Additional Closed New Commitments for the Third Quarter of $46.5 Million for Updated Total Closed New Commitments of $193.5 Million

Download as PDF
  • Company Reiterates Potential Full-Year Guidance of ~$700-$850 Million in New Commitments

PALO ALTO, Calif.--(BUSINESS WIRE)-- Hercules 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 additional closed commitments since the release of the company’s Portfolio Update dated September 29, 2014.

“The strong last minute finish at the end of the third quarter demonstrates the capabilities of our origination teams and the continued strong demand for venture lending as many venture-backed technology and life sciences companies seek to bolster their own liquidity positions driven by the recent market volatility,” said Manuel A. Henriquez, chairman and chief executive officer of Hercules. “As we look toward the fourth quarter of 2014 and the start of 2015, we have been active in bolstering our own liquidity and balance sheet position, culminating with Hercules’ recent achievement of an investment grade rating (BBB-) received from Standard & Poor’s. We view this recent activity as further recognition of Hercules' commitment, credit performance, and its growing brand recognition as the largest speciality finance venture debt provider.”

Announcing Late Additional Originations Activity for Q3 2014

For the quarter ended September 30, 2014, Hercules originated approximately $193.5 million in closed commitments, inclusive of closed commitments of $46.5 million that came late in the quarter.

Hercules has made additional new commitments to the following four companies:

  • $20.0 million commitment to a leading manufacturer of nanolaminated coatings, claddings and alloys.
  • $15.0 million commitment to a biopharmaceutical company focused on the global development and commercialization of biosimilar monoclonal antibodies.
  • $6.5 million commitment to a leader in molecular breast imaging (MBI).
  • $5.0 million commitment to a natural products company that provides proprietary ingredients and science-based solutions.

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. Hercules’ commitments may include conditions, such as reaching certain milestones, before the debt commitment would become available. Hercules requires additional funding or performance-based milestone achievements to mitigate risk; such limitations may impact actual funding levels.

Additional Principal Repayments of $2.0 million:

Hercules continued its previously announced efforts to selectively prune and rebalance its investment portfolio. On September 30, 2014, Hercules received approximately $2.0 million in additional unscheduled, early principal repayments. During the third quarter of 2014, Hercules received a total of approximately $116.2 million in principal repayments, of which approximately $84.2 million were unscheduled, early repayments.

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 through Hercules should contact info@htgc.com, or call 650-289-3060.

Forward-Looking Statements

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
info@htgc.com
or
Market Street Partners
Ed Keaney, 415-445-3238
ekeaney@marketstreetpartners.com

Source: Hercules Technology Growth Capital, Inc.

Released October 6, 2014