Hercules Provides Portfolio Update for Q2 2016 and Highlights Continued Execution of Its Portfolio and Earnings Growth Strategy
05 Juillet 2016 - 5:34PM
Business Wire
- Closed New Debt and Equity Commitments
to Date for Q2 2016 of $203.9 million
- Eight (8) new commitments to venture
growth stage innovative technology, life sciences and sustainable
& renewable technology companies backed by leading venture
capital firms
- Over $6.0 Billion in Total Debt
Commitments Milestone achieved (since inception December 2003)
- Unscheduled Principal Repayments “Early
Pay-offs” for Q2 2016 of $117.6 million
- Five (5) Hercules’ portfolio companies
currently in IPO Registration
- Six (6) announced current and former
portfolio company M&A liquidity events during Q2 2016
- Completed two successful bond
offerings, raising an additional $141.9 million of 6.25% Notes due
2024 (“HTGX”) to support continued portfolio and earnings
growth
- Expanded the Wells Fargo Accordion
Credit Facility with an additional $25 million from Everbank, for a
total of $120.0 million in credit capacity, subject to borrowing
base, leverage and other restrictions
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the
“Company”), the leading specialty financing provider to innovative
venture growth, pre-IPO and M&A stage companies backed by
leading venture capital firms, today provided its portfolio update
for Q2 2016.
“I am very pleased that the momentum of our loan origination
activity from our strong first quarter this year continued into the
second quarter with over $203 million in new commitments to new and
existing companies,” stated Manuel A. Henriquez, chairman and chief
executive officer of Hercules. “We continue to selectively deploy
capital while adhering to our ‘slow and steady’ growth strategy and
maintaining a balanced and diversified approach across the
industries and sectors in which we are originating new deals.
Liquidity and access to capital continue to be the key
differentiators to growth in the BDC industry. Hercules being one
of the few BDCs that trade above NAV and carry an investment grade
credit rating, raised an additional $142 million in 6.25% Notes due
2024 as well as expanded its Wells Fargo Accordion Facility with an
additional $25 million from Everbank. We continue to methodically
convert our strong liquidity position into new interest-earning
loans to innovative venture growth stage companies and executing on
our 2016 portfolio and earnings growth strategy, subject to market
conditions.”
New Debt and Equity Commitments for Q2 2016
As of June 30, 2016, Hercules has originated $203.9 million
of debt and equity commitments to new and existing portfolio
companies.
Eight (8) new commitments to innovative venture growth stage
companies:
Technology Portfolio – $57.9
Million
- $12.5 million to a technology developer
of a software platform that uses big data, semantic analysis, and
network theory to augment and amplify human intelligence
- $40.0 million to a consumer services
developer of the nation’s largest job site for part-time and
full-time hourly jobs
- $5.4 million to a technology developer
that designs and delivers platforms for integrating, visualizing
and analyzing structured and unstructured data sources
Life Sciences Portfolio – $53.0
Million
- $8.0 million to a preclinical stage
biopharmaceutical company dedicated to developing products for the
treatment of inherited enzyme deficiencies in the liver using
intracellular replacement therapy
- $15.0 million to a biopharmaceutical
company developing technology platforms that integrates advanced
fluidics, optics, biochemistry capabilities to produce
sample-to-answer products for DNA-based human identity testing for
forensics and law enforcement applications
- $30.0 million to a biopharmaceutical
manufacturer developing products using three-dimensional printing
(3DP) technology and manufacturing systems to develop their
products
Sustainable and Renewable Technology
Portfolio – $50.0 Million
- $20.0 million to a manufacturer of
ultra-clean stationary fuel cell power plants that generate
electricity with up to twice the efficiency of conventional fossil
fuel plants – and with virtually no air pollution
- $30.0 million to a developer of
hydrogen fuel cell technology, designed to cost effectively
increase productivity, lower operating costs and reduce carbon
footprint
New Commitments to Existing Portfolio
Companies – $43.0 Million
Scheduled and Unscheduled Principal Repayments “Early
Pay-Offs:”
As of June 30, 2016, Hercules received $141.7
million in total principal repayments, of which $117.6 million
was unscheduled early repayments.
Portfolio IPO and M&A Activity in Q2 2016:
IPO Activities
- As of June 30, 2016, Hercules held
warrant and equity positions in five (5) portfolio companies that
had filed Registration Statements in contemplation of a potential
IPO:
- In June 2016, Hercules’ portfolio
company, TPI Composites, filed a Form S-1 Registration with
the SEC in contemplation of a potential public offering
- Four companies filed confidentially
under the JOBS Act
There can be no assurances that companies that have yet to
complete their IPOs will do so.
M&A Activities
- In May 2016, Jazz Pharmaceuticals plc
(NASDAQ: JAZZ) announced that it had entered into a definitive
agreement to acquire former Hercules’ portfolio company Celator
Pharmaceuticals, Inc. (NASDAQ: CPXX) for approximately $1.5
billion.
- In May 2016, Pfizer Inc. (NYSE: PFE)
announced that it had entered into a definitive agreement to
acquire former Hercules’ portfolio company Anacor
Pharmaceuticals, Inc. (NASDAQ: ANAC) for approximately $5.2
billion. The transaction closed in June 2016.
- In May 2016, Grupo Ferrer
Internacional, S.A. announced that it had entered into a definitive
agreement under which Ferrer Pharma Inc. ("Ferrer Pharma"), a
wholly-owned subsidiary of Ferrer, to acquire former Hercules’
portfolio company Alexza Pharmaceuticals, Inc. (NASDAQ:
ALXA) for $0.90 per share in cash.
- In June 2016, Gannett Co., Inc. (NYSE:
GCI) announced that it had entered into a definitive agreement to
acquire Hercules’ portfolio company ReachLocal, Inc.
(NASDAQ: RLOC) for $4.60 per share in cash, via a tender offer.
Hercules currently holds warrants for 300,000 shares of common
stock, as of March 31, 2016.
- In June 2016, Hercules’ portfolio
company Sungevity, Inc. announced that it had entered into a
definitive merger agreement with Easterly Acquisition Corp.
(NASDAQ: EACQ). Upon completion of the transaction Easterly will
change its name to Sungevity Holdings, Inc. and will trade on the
NASDAQ stock exchange under the ticker symbol SGVT. Hercules
currently holds 68,807,339 shares of Preferred Series D stock, and
warrants for 20,000,000 shares of common stock and 32,472,222
shares of Preferred Series C stock, as of March 31, 2016.
- In June 2016, Vista Equity Partners
announced that it intends to acquire Hercules’ portfolio company
Ping Identity. Financial terms were not disclosed. Hercules
currently holds 684,004 shares of Preferred Series B stock, as of
March 31, 2016.
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 $6.0 billion to over 350 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 listed under the symbols “HTGZ,”
- 7.00% Unsecured Notes due September
2019, NYSE listed under the symbols “HTGY,” and
- 6.25% Unsecured Notes due July 2024,
NYSE listed under the symbols “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/20160705005811/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578 HT-HNInvestor
Relations and Corporate Communicationsmhara@htgc.com
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