Hercules Issues Additional $3 Million in Principal of 6.25% Notes Due 2024 to Cover Underwriters Over-Allotment Option
Aggregate Proceeds of Notes Increased to $103 Million
PALO ALTO, Calif.--(BUSINESS WIRE)--Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (the “Company), 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, today announced that in connection with the recent public offering of $100 million in aggregate principal amount of 6.25% Notes due 2024, the underwriters exercised their option to purchase an additional $3 million in aggregate principal amount of Notes to cover over-allotments. The transaction closed on August 11, 2014, bringing the total size of the offering to $103 million.
“By closing the over-allotment option, Hercules has demonstrated the strong demand that exists for its third offering in the public debt capital markets, and we were able to raise an additional $3 million of proceeds at an attractive cost of capital.”
“We are very pleased that our underwriters elected to exercise their over-allotment option,” said Hercules Co-founder, Chairman and Chief Executive Officer, Manuel Henriquez. “By closing the over-allotment option, Hercules has demonstrated the strong demand that exists for its third offering in the public debt capital markets, and we were able to raise an additional $3 million of proceeds at an attractive cost of capital.”
As previously announced, the Company intends to invest the net proceeds of this public offering to fund investments in debt and equity securities in accordance with its investment objective, for other general corporate purposes and to fund certain amounts payable in connection with the conversion of the Company’s 6.00% Convertible Senior Notes due 2016.
The Notes will mature on July 30, 2024, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after July 30, 2017. The Notes will bear interest at a rate of 6.25% per year payable quarterly on January 30, April 30, July 30 and October 30, of each year, beginning July 30, 2014. The offering was assigned a BBB+ rating by the Kroll Bond Rating Agency.
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 firstname.lastname@example.org, or call 650.289.3060.
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.