Hercules Continues to Expand Its Wells Fargo Accordion Credit Facility with an Additional $25 Million from EverBank

PALO ALTO, Calif.--()--Hercules Capital, Inc. (NYSE:HTGC) (“Hercules” or the “Company”) the leading specialty financing provider to innovative venture growth stage companies backed by leading venture capital firms, today announced that effective April 7, 2016, it has expanded its credit facility with Wells Fargo Capital Finance (“WFCF”), part of Wells Fargo & Company (NYSE:WFC), under which EverBank has committed $25.0 million, for a total of $120.0 million in credit capacity under a $300.0 million accordion credit facility, subject to borrowing base, leverage and other restrictions. Borrowings under the enhancement maintain the current interest rate of LIBOR plus 3.25% with no floor and a maturity date to August 2018, plus a 12-month amortization period. The advance rate of 50% against eligible loans remains the same.

This is in addition to the Company’s previous announcement on March 8, 2016, of adding AloStar Bank of Commerce to the Wells Fargo accordion credit facility by an additional $20.0 million commitment.

“We are excited to have EverBank join our facility and increasing our capacity to $120 million,” stated Mark R. Harris, chief financial officer of Hercules. “Expanding our debt capacity and enhancing our treasury capabilities, at a lower cost of debt, is very beneficial for Hercules shareholders as it potentially increases net investment income and earnings per share. This facility expansion exemplifies our long-standing credit stature with some of the industry’s highest-quality banking institutions and our success at increasing our credit capacity as we grow our business. We look forward to further business opportunities with our two new partner banks, AloStar and EverBank, as well as our long-time partner Wells Fargo.”

For additional information, please review the Company’s current report on Form 8-K, to be filed with the Securities and Exchange Commission, which will include the completed transaction documents.

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 more than $5.7 billion to over 335 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 (NYSE) under the ticker symbol "HTGC."

In addition, Hercules has three outstanding bond issuances of 7.00% Notes due April 2019, 7.00% Notes due September 2019, and 6.25% Notes due July 2024, which trade on the NYSE under the symbols “HTGZ,” “HTGY,” and “HTGX,” respectively.

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.

Contacts

Hercules Capital, Inc.
Michael Hara, 650-433-5578 HT-HN
Investor Relations and Corporate Communications
mhara@htgc.com

Contacts

Hercules Capital, Inc.
Michael Hara, 650-433-5578 HT-HN
Investor Relations and Corporate Communications
mhara@htgc.com