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Hercules Capital Reports Record-Breaking Annual Originations in 2018

January 08, 2019, 07:00 AM
Filed Under: Industry News

Hercules Capital, Inc., a specialty finance company, announced its many select investment and operating highlights for 2018.

“We completed a strong fourth quarter and culminated the year with total new investment commitments exceeding $1.21 billion in 2018, which resulted in a record-breaking annual originations performance,” stated Manuel A. Henriquez, chairman and chief executive officer of Hercules. “These 2018 accomplishments exemplify our industry-leading venture debt platform and strong brand recognition within the VC community and underscores our team’s outstanding effort and ability to execute on all fronts to deliver on a truly remarkable year for our shareholders.”

Henriquez continued, “2018 has been a transformative year for Hercules as evidenced by the many amazing accomplishments and critical financial achievements. This year would not have been possible without the unwavering dedication and expertise of our world-class employees, combined with the ongoing support from numerous outstanding partnerships, which include our amazing and ingenious entrepreneurs and their outstanding venture capital sponsors who select Hercules as their capital partner of choice, as well as our investment bankers, rating agencies, shareholders and bondholders. We are truly grateful and thank you for your continued trust. Entering 2019, we maintain a very optimistic outlook and believe we are well positioned to continue to our momentum in the current market environment.”

Q4 2018 Select Achievements and Highlights

New Debt and Equity Commitments

Q4 2018 closed and pending new debt and equity commitments totaling $320.9 million  

Corporate Events

  • Received stockholder approval to reduce its asset coverage requirement to 150.0% from 200.0%
  • Received a “For” recommendation from both ISS and Glass Lewis to reduce its asset coverage requirement to 150.0%, one of the few Business Development Company’s (“BDCs”) to receive such support

Full-Year 2018 Select Major Achievements and Highlights

New Debt and Equity Commitments

  • Record total closed cumulative new debt and equity commitments of $1.21 billion, as of December 31, 2018

Capital Market Raising Activities

  • Issued $75.0 Million of 5.25% 7-year Notes due 2025
  • Issued $40.0 Million of 6.25% 15-year Notes due 2033
  • Issued $200.0 Million of 4.605% 3.5-year Securitization Notes
  • Completed $81.0 Million Common Stock Offering, accretive to NAV
  • Completed $82.3 Million ATM net proceeds, accretive to NAV, as of September 30, 2018

Corporate Events

  • Completed strategic acquisition of Gibraltar Business Capital – an Asset Based Lending platform, and a Hercules Capital portfolio company.Formed
  • Hercules Capital SaaS Finance Division
  • Received SBA Green Light Letter Approval to apply for a third SBIC license
  • BBB Investment Grade Credit and Corporate Rating from DBRS
  • BBB Investment Grade Credit and Corporate Rating from KBRA

Portfolio Company Completion IPO Events

1. DocuSign, Inc. 

2. Tricida, Inc. 

3. BridgeBio/Eidos Therapeutics, Inc.  

Portfolio Company Completion M&A Events

1. Inotek Pharmaceuticals Corporation

2. Neothetics, Inc. 

3. IntegenX Inc.

4. FanDuel

5. RazorGator Inc.

6. NuGen Technologies, Inc.

7. Avnera Corporation

8. INXPO, Inc.

9. NewVoiceMedia Ltd.

10. Clustrix

11. Edge Therapeutics, Inc.

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