Hercules Technology Growth Capital Provides Investment Portfolio Update for First Quarter 2013

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  • Closed approximately $224.0 million in commitments in Q1 13, up 121.1% year-over-year
  • Completed $95.3 million equity capital raise net of offering expenses in March

PALO ALTO, Calif.--(BUSINESS WIRE)-- Hercules Technology Growth Capital, Inc. (NYSE: HTGC), (“Hercules”), 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 cleantech industries, at all stages of development, today announced its first quarter 2013 portfolio update.

Q1 Originations:

As of March 31, 2013, Hercules has originated approximately $224.0 million of debt and equity commitments to new and existing portfolio companies, an increase of 121.1% from the same period a year ago.

Hercules' new investment commitments include:

  • $30.0 million commitment to OCZ Technology Group, Inc. (OCZ) (NASDAQ: OCZ), a global leader in the design, manufacturing, and distribution of high-performance solid-state storage solutions and premium computer components.
  • $30.0 million commitment to TAS Energy, a technology company providing clean economic power solutions by focusing on the energy efficiency and renewable markets.
  • $25.0 million commitment to United Orthopedic Group, Inc., a company offering a full line of non-invasive, rehabilitative products and related services for use in the Orthopedic, Sports Medicine, and Spinal market sectors.
  • $15.0 million commitment to Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC), a biopharmaceutical company committed to the development and commercialization of an integrated portfolio of oncology products aimed at making cancer more treatable.
  • $12.5 million commitment to Omthera Pharmaceuticals, Inc., a specialty pharmaceutical company focusing its efforts on the clinical development and commercialization of new therapies for dyslipidemia and cardiovascular disease. Omthera is dedicated to developing new lipid-regulating therapies for the millions of patients who have elevated triglyceride levels and, in turn, an increased risk of cardiovascular disease.
  • $10.0 million commitment to Medrobotics Corp., a Massachusetts based emerging medical robotics company developing the innovative Flex™ Robotic System, a robotic-assist platform that enables surgeons to gain single-site access and visualization to difficult-to-access anatomical locations.
  • $10.0 million commitment to MELA Sciences, Inc., a medical device company that focuses on the design and development of a non-invasive, point-of-care instrument to assist in the early diagnosis of melanoma.
  • $10.0 million commitment to NEOS Geosolutions, a solutions-oriented geosciences company that is a leader in the emerging field of multi-measurement subsurface interpretation.
  • $10.0 million commitment to Neuralstem, Inc. (NYSE: CUR), a clinical stage company focused on the treatments for central nervous system disease based on transplanting human neural stems cells and the use of small molecule drugs.
  • $10.0 million commitment to NinePoint Medical, a medical device company using a platform technology called Nvision VLE, a non-invasive, endo-microscopic 3-D imaging solution.

In addition, Hercules provided approximately $61.0 million of debt and equity commitments and renewals to existing portfolio companies, which includes a $35.0 million renewal of an existing debt investment.

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. In addition, closed commitments generally fund 70-80% of the committed amount in aggregate over the life of the commitment and generally fund over the two succeeding quarters from close. Finally, certain commitments may include conditions such as reaching certain milestones before the Hercules debt commitment would become available.

Portfolio Company Liquidity Events:

M&A

On March 6, 2013, Hercules portfolio company Althea Technologies announced it has entered into a definitive agreement to be acquired by Japanese company Ajinomoto Co., Inc. (TYO: 2802).

There can be no assurances that these companies will complete their respective mergers and acquisitions in a timely manner or at all.

Current Companies in IPO Registration and Existing Warrant Portfolio:

As of March 31, 2013, Hercules had warrant positions in approximately 117 different technology, life science and cleantech companies, and four portfolio companies had filed Form S-1 Registration Statements in contemplation of a potential IPO:

  1. ADMA Biologics, Inc.
  2. iWatt, Inc.
  3. Omthera Pharmaceuticals, Inc.
  4. Paratek Pharmaceuticals, Inc.

There can be no assurances that these companies will complete their IPOs in a timely manner or at all.

Capital Raising Activities in Q1:

On March 13, 2013, Hercules closed a public offering of approximately 8.1 million shares of its common stock at a price of $11.90 per share, resulting in proceeds of approximately $95.3 million after deducting estimated offering expenses.

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 cleantech industries at all stages of development. Since inception (December 2003), Hercules has committed more than $3.6 billion to over 230 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 two outstanding bond issuances of 7.00% Senior Notes due 2019—the April 2019 Notes and September 2019 Notes—which trade on the NYSE under the symbols “HTGZ” and “HTGY,” respectively.

Companies interested in learning more about financing opportunities should contact info@htgc.com, or call 650.289.3060.

Forward-Looking Statements:

The statements contained in this release that are not purely historical are forward-looking statements. 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 turbulence, and other factors we identify from time to time in our filings with the Securities and Exchange Commission. Although we believe 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.

Hercules Technology Growth Capital, Inc.
Sally Borg
Main, 650-289-3060 HT-HN
sborg@htgc.com
or
Market Street Partners
Linda Wells, 415-445-3236
lwells@marketstreetpartners.com

Source: Hercules Technology Growth Capital, Inc.

Released April 9, 2013