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EverBank Joins WFCF, AloStar in Hercules Capital’s $120MM Facility

April 08, 2016, 07:52 AM
Filed Under: Lender Finance

Hercules Capital, Inc., a 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, 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.”

Hercules Capital, Inc. is a leading 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.

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