Hercules Capital, Inc. Completes A Term Debt Securitization in Connection with Which an Affiliate of the Company Made an Offering of $250,000,000 in Aggregate Principal Amount of Fixed-Rate Asset-Backed Notes
January 22, 2019 at 07:39 pm
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Hercules Capital, Inc. completed a term debt securitization in connection with which an affiliate of the Company made an offering of $250,000,000 in aggregate principal amount of fixed-rate asset-backed notes, which Notes were rated A(sf) by Kroll Bond Rating Agency, Inc. The Notes were issued by Hercules Capital Funding Trust 2019-1 pursuant to a note purchase agreement, dated as of January 14, 2019, by and among the Company, Hercules Capital Funding 2019-1 LLC, as Trust Depositor, Hercules Capital Funding Trust 2019-1, as Issuer, Guggenheim Securities, LLC, as Initial Purchaser, MUFG Securities Americas Inc., as a co-manager, and Wells Fargo Securities, LLC, as a co-manager, and are backed by a pool of senior loans made to certain portfolio companies of the Company and secured by certain assets of those portfolio companies and are to be serviced by the Company. The outstanding principal balance of the pool of loans as of December 31, 2018 was approximately $357,179,128. Interest on the Notes will be paid, to the extent of funds available, at a fixed rate of 4.703% per annum. The Notes have an expected maturity of September 20, 2024.
Hercules Capital, Inc. is a specialty finance company. The Company is focused on providing financing solutions to venture capital-backed and institutional-backed companies in a variety of technology, life sciences and sustainable and renewable technology industries. It is structured as an internally managed, non-diversified, closed-end investment company. Its business objectives are to increase its net income, net investment income, and net asset value (NAV) through its investments in primarily Structured Debt or senior secured debt instruments of venture capital-backed and institutional-backed companies across a variety of technology related industries at attractive yields. It invests in a range of companies active in the technology industry sub-sectors characterized by products or services that require advanced technologies, including, computer software and hardware, networking systems, semiconductors, semiconductor capital equipment, information technology infrastructure and others.
Hercules Capital, Inc. Completes A Term Debt Securitization in Connection with Which an Affiliate of the Company Made an Offering of $250,000,000 in Aggregate Principal Amount of Fixed-Rate Asset-Backed Notes