Hercules Capital Inc Stock Price, News & Analysis

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).

Hercules Capital (NYSE: HTGC) has announced a new supplemental cash distribution of $0.28 per share, which will be distributed equally over four quarters starting Q4 2024. The first payment of $0.07 per share is scheduled for March 5, 2025, with a record date of February 26, 2025.

This supplemental distribution is additional to the regular quarterly cash distribution of $0.40 per share for Q4 2024. The company maintains a variable distribution policy aiming to distribute 90-100% of its quarterly taxable income. The supplemental payment will be made from Hercules' undistributed taxable income as of December 31, 2024.

For Q4 2024 distributions, 100% were derived from current and accumulated earnings and profits. Additionally, 79.97% of the distributions qualify as Qualified Interest Income (QII), which may be exempt from U.S. withholding tax on foreign accounts.

Hercules Capital (NYSE: HTGC) has declared a total cash distribution of $0.47 per share for Q4 2024, consisting of a $0.40 base distribution and a $0.07 supplemental distribution. The distribution will be paid on March 5, 2025, to stockholders of record as of February 26, 2025.

The company maintains a variable distribution policy targeting 90-100% of quarterly taxable income. For Q4 2024, 100% of distributions were derived from current and accumulated earnings and profits. Additionally, 79.97% of the Q4 distributions qualify as Qualified Interest Income (QII), which may be exempt from U.S. withholding tax for foreign accounts under IRC Section 871(k).

Hercules Capital (NYSE: HTGC), the largest specialty financing provider to venture, growth and established stage companies, has scheduled its fourth quarter and full-year 2024 financial results conference call for Thursday, February 13, 2025, at 2:00 p.m. PT (5:00 p.m. ET). The company will release its 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. An archived webcast replay will remain accessible for at least 30 days following the conference call.

Hercules Capital (NYSE: HTGC) has renewed and expanded its credit facility with Sumitomo Mitsui Banking (SMBC) from $225.0 million to $300.0 million. The renewed facility includes participation from Synovus Bank, Customers Bank, and Apple Bank, with an uncommitted accordion feature expandable up to $500.0 million. The facility matures in November 2029, including a 12-month amortization period. This renewal aims to strengthen capital resources and enhance operational flexibility while maintaining optimal cost of capital.

Hercules Capital (NYSE: HTGC) reported strong financial results for Q3 2024, achieving record total investment income of $125.2 million, up 7.3% year-over-year. The company's net investment income (NII) reached $83.2 million, or $0.51 per share, representing an 8.3% increase year-over-year and providing 128% coverage of base cash distribution. Total gross debt and equity commitments were $430.7 million, with gross fundings of $272.0 million. The company maintained conservative balance sheet management with net GAAP leverage of 92.5% and net regulatory leverage of 83.0%. Assets under management grew 10.9% year-over-year to approximately $4.6 billion.

Hercules Capital (HTGC) has declared a total cash distribution of $0.48 per share for Q3 2024, consisting of a $0.40 base distribution and an $0.08 supplemental distribution. The distribution will be paid on November 20, 2024, to stockholders of record as of November 13, 2024. The company maintains a variable distribution policy targeting 90-100% of quarterly taxable income. For Q3 2024, 100% of distributions were derived from current earnings and profits, with 80.08% qualifying as Qualified Interest Income for foreign accounts.