Hercules Capital Inc Stock Price, News & Analysis

Hercules Capital (NYSE: HTGC) has announced a total cash distribution of $0.47 per share for Q1 2025, consisting of a $0.40 base distribution and a $0.07 supplemental distribution.

Key distribution dates include:

• Record Date: May 13, 2025
• Payment Date: May 20, 2025

The company maintains a variable distribution policy targeting 90-100% distribution of quarterly taxable income. For Q1 2025, 100% of distributions came from current earnings and profits. Additionally, 79.97% of distributions qualify as Qualified Interest Income (QII), which may be exempt from U.S. withholding tax for foreign accounts.

As the largest specialty finance provider to venture-backed companies, Hercules Capital's Board can opt to pay supplemental distributions to distribute annual taxable income or carry it forward for future payments.

Hercules Capital (NYSE: HTGC), the largest specialty financing provider to innovative venture and growth companies, has announced its upcoming first quarter 2025 financial results release and conference call.

The company will host the conference call on Thursday, May 1, 2025, at 2:00 p.m. PT (5:00 p.m. ET), following the release of financial results after market close on the same day.

Participants can register for telephone access, and a live webcast will be available on the investor relations section at investor.htgc.com. The webcast replay will remain accessible for at least 30 days after the call.

Hercules Capital (NYSE: HTGC), the leading specialty financing provider to innovative venture and growth companies, has received a significant credit rating upgrade from Fitch Ratings. The firm's senior secured debt rating has been elevated to BBB from BBB-, while maintaining its BBB- issuer default rating and unsecured debt ratings.

According to Fitch, the upgrade reflects Hercules' strong recovery prospects in stress scenarios, supported by its funding mix and asset coverage. Seth Meyer, CFO of Hercules, highlighted that the rating upgrade demonstrates the company's scale and quality of their differentiated venture lending business model, along with their consistent ability to deliver shareholder returns across various market cycles.

Hercules Capital (NYSE: HTGC), the largest specialty financing provider to innovative venture and growth companies, has received a significant credit rating upgrade from Fitch Ratings. The firm's investment grade credit and corporate rating has been elevated to BBB from BBB- with a stable outlook.

According to Seth Meyer, CFO of Hercules, this upgrade acknowledges the company's scale and quality of their differentiated venture and growth stage lending business model, along with their consistent delivery of shareholder returns across various market cycles. The improved BBB rating with stable outlook particularly highlights the company's strong recovery prospects during stress scenarios, supported by its funding mix and available asset coverage.

Hercules Capital (NYSE: HTGC) has successfully closed a private offering of $287.5 million in 4.750% Convertible Unsecured Notes due 2028, including a fully exercised $37.5 million overallotment option. The notes, rated BBB+ by Kroll Bond Rating Agency, were exclusively sold to qualified institutional buyers.

The convertible notes feature a 4.750% annual interest rate paid semiannually and an initial conversion rate of 46.5631 shares per $1,000 principal, equivalent to a conversion price of $21.48 per share - a 12.5% premium over the March 5 closing price of $19.09. Upon conversion, Hercules can choose to settle in cash, common stock, or a combination thereof.

The proceeds will be used to fund investments in debt and equity securities aligned with the company's investment objective and for working capital purposes. The notes will mature on September 1, 2028, with no early redemption rights.

Hercules Capital (NYSE: HTGC), the largest specialty financing provider to venture and growth stage companies, has received a credit rating upgrade from Morningstar DBRS to BBB (high) from BBB, with a revised outlook to Stable from Positive.

The upgrade reflects Hercules' strong operating performance through 2024, approximately 14% year-over-year growth in assets under management (AUM), and its position as the largest non-bank dedicated lender in the VC ecosystem. The rating agency highlighted the company's asset level credit performance, diversified funding profile, and conservative balance sheet leverage as key factors supporting the upgrade.

The Stable outlook indicates DBRS expects Hercules to maintain its franchise-leading scale, while considering potential impacts of changing U.S. government policies on the VC market.

Hercules Capital (NYSE: HTGC) has announced the pricing of $250.0 million of 4.75% Convertible Unsecured Notes due 2028, with an additional $37.5 million option for overallotments. The notes, offered exclusively to qualified institutional buyers, will bear a 4.75% annual interest rate paid semiannually.

The notes are convertible at an initial rate of 46.5631 shares per $1,000 principal amount, equivalent to $21.48 per share - a 12.5% premium over the March 5, 2025 closing price of $19.09. Upon conversion, Hercules can choose to settle in cash, common stock, or a combination thereof.

The company plans to use the proceeds to fund investments in debt and equity securities and for working capital purposes. The notes will mature on September 1, 2028, and cannot be redeemed prior to maturity.

Hercules Capital (NYSE: HTGC) has announced plans to offer $250.0 million in Convertible Unsecured Notes due 2028, with an additional $37.5 million overallotment option. The notes will:

• Be offered exclusively to qualified institutional buyers and certain non-U.S. persons
• Pay interest semiannually
• Be convertible to cash, common stock, or a combination thereof
• Mature on September 1, 2028

The company plans to use the proceeds to fund investments in debt and equity securities and for working capital purposes. The final terms, including interest rate and conversion rate, will be determined through negotiations with initial purchasers. The notes and potential conversion shares will not be registered under the Securities Act.

Hercules Capital (NYSE: HTGC) reported strong financial results for Q4 and full-year 2024, marking several record achievements. The company's total investment income reached $493.6 million for the full year, up 7.1% year-over-year, while net investment income (NII) grew 7.2% to $325.8 million.

Q4 2024 performance included NII of $81.1 million ($0.49 per share), providing 123% coverage of the base cash distribution. The company maintained a conservative balance sheet with net GAAP leverage of 83.9% and net regulatory leverage of 69.9%. Total assets under management increased 14.2% year-over-year to $4.8 billion.

The company announced a new supplemental cash distribution for 2025 of $0.28 per share, payable over four quarters, and reported an undistributed earnings spillover of $163.6 million ($0.96 per share).