Hercules Capital Prices $200.0 Million of Convertible Senior Notes Upsized from $150.0 Million
January 19 2017 - 9:16PM
Business Wire
Hercules Capital, Inc. (NYSE:HTGC) (“Hercules” or the
“Company”), today announced that it has agreed to sell to the
initial purchaser in a private offering, $200.0 million aggregate
principal amount of its 4.375% Convertible Senior Notes due 2022
(the “Convertible Senior Notes”). The offering was upsized to
$200.0 million aggregate principal amount of the Convertible Senior
Notes from the previously announced offering size of $150.0 million
aggregate principal amount of the Convertible Senior Notes. The
Company also has granted the initial purchaser an option to
purchase up to an additional $30.0 million principal amount of the
Convertible Senior Notes to cover overallotments, if any. The
Convertible Senior Notes will be offered only to qualified
institutional buyers (as defined in the Securities Act of 1933, as
amended (the “Securities Act”)) pursuant to Rule 144A under the
Securities Act. The closing of the transaction is subject to
customary closing conditions and the Convertible Senior Notes are
expected to be delivered and paid for on January 25, 2017.
The Convertible Senior Notes are unsecured and bear interest at
a rate of 4.375% per year, payable semiannually. In certain
circumstances, at the Company’s election, the Convertible Senior
Notes will be converted into cash, shares of common stock or a
combination of cash and shares of common stock, at an initial
conversion rate of 60.9366 shares of common stock per $1,000
principal amount of Convertible Senior Notes which is equivalent to
an initial conversion price of approximately $16.41 per share of
the Company’s common stock, subject to customary anti-dilution
adjustments. The conversion price is approximately 15% above the
$14.27 per share closing price of the Company’s common stock on
January 19, 2017. The Company will not have the right to redeem the
Convertible Senior Notes prior to maturity. The Convertible Senior
Notes will mature on February 1, 2022, unless repurchased or
converted in accordance with their terms prior to such date.
The Company intends to use the net proceeds from this offering
(i) to repurchase or otherwise redeem all of its 7.00% Notes due
2019, (ii) to fund investments in debt and equity securities in
accordance with its investment objective and (iii) for working
capital and other general corporate purposes.
Neither the Convertible Senior Notes nor the common stock that
may be issued upon conversion thereof will be registered under the
Securities Act. Neither the Convertible Senior Notes nor the common
stock that may be issued upon conversion thereof may be offered or
sold in the United States absent registration or an applicable
exemption from the registration requirements of the Securities
Act.
This press release does not constitute an offer to sell any
securities of Hercules Capital, Inc. and is not soliciting an offer
to buy such securities in any state where such offer and sale is
not permitted. It is issued pursuant to Rule 135c under the
Securities Act.
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 broad variety of technology, life
sciences and sustainable and renewable technology industries. Since
inception (December 2003), Hercules has committed more than $6.3
billion to over 360 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 info@htgc.com, 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% Unsecured Notes due April 2019
(NYSE: HTGZ)
- 7.00% Unsecured Notes due September
2019 (NYSE: HTGY)
- 6.25% Unsecured Notes due July 2024
(NYSE: HTGX)
Forward-Looking Statements
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170119006362/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
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