Hercules Tech To Renew $300 Mln Accordion Credit Faciltiy

Hercules Technology Growth Capital said Wednesday that it has received a commitment to renew its $300 million accordion credit facility. Wells Fargo Capital Finance and RBC Capital Markets have committed $100 million, according to a statement.


Hercules Technology Growth Capital, Inc. (NASDAQ:HTGC), the leading specialty finance company devoted to addressing the capital needs of venture capital and private equity-backed technology-related companies, including clean technology, life sciences and lower middle market companies at all stages of development, today announced it has received a commitment to renew its $300.0 million accordion credit facility and has received initial commitments of $100.0 million through Wells Fargo Capital Finance (“WFCF”) and the RBC Capital Markets.
“We appreciate the confidence in Hercules performance demonstrated by these two outstanding institutions joining together to initiate the syndicate,” said Manuel A. Henriquez, co-founder, chairman and chief executive officer of Hercules. “This credit facility provides Hercules with increased liquidity to manage our existing portfolio companies as well as additional capital for new investments as we continue to expand our portfolio.”
Under this new three-year senior secured facility (the “facility”), WFCF and RBC have commitments of $75.0 million and $25.0 million, respectively. Borrowings under the facility are expected to be at an interest rate per annum equal to LIBOR plus 3.50%, with a floor of 5.00% and an advance rate of 50% against eligible loans. The new facility will be secured by loans in the borrowing base only. The facility contains an accordion feature, in which the Company can increase the credit line up to an aggregate of $300.0 million, funded by additional lenders who may join the facility and with the agreement of WFCF and RBC and subject to other customary conditions. There can be no assurances that additional lenders will join the new credit facility.
This new arrangement replaces a previous $300.0 million accordion WFCF credit facility, under which WFCF had initially committed $50.0 million in capital, and is subject to customary closing conditions and the completion of appropriate documentation. No assurance can be given that WFCF, RBC and the Company will execute definitive documentation, that the definitive documentation will reflect the terms described herein or that the facility will be entered into at all.
About Hercules Technology Growth Capital, Inc.:
Hercules Technology Growth Capital, Inc. is a NASDAQ traded specialty finance firm providing customized loans to public and private technology-related companies, including clean technology, life science and lower middle market companies at all stages of development. Since its founding in 2003, Hercules has committed over $2.1 billion in flexible financing solutions to over 155 companies, enabling these companies to maximize their equity by leveraging these assets. Hercules’ strength comes from its deep understanding of credit and the industries it serves, allowing it to partner with venture capital and private equity companies for a less dilutive source of growth capital helping companies to bridge through their critical stages of growth. Hercules offers a full suite of growth capital products at all levels of the capital structure, ranging from $500,000 to $30 million, lines of credit to term loans. The company is headquartered in Palo Alto, California and has additional offices in Massachusetts and Colorado. Providing capital to publicly-traded or privately-held companies backed by leading venture capital and private equity firms involves a high degree of credit risk and may result in potential losses of capital. For more information, please visit www.htgc.com.
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.