Hercules Capital Inc Stock Price, News & Analysis

Hercules Capital (NYSE: HTGC) has priced an upsized public offering of $350.0 million in 6.000% notes due June 2030. The unsecured notes will pay interest semiannually and mature on June 16, 2030, with an option for early redemption at par plus a potential make-whole premium. The offering is expected to close on June 16, 2025, with proceeds intended to repay existing secured debt. Goldman Sachs & Co. LLC and SMBC Nikko Securities America are serving as joint book-running managers, with several other firms acting as co-managers. The notes are being offered through a prospectus supplement and accompanying prospectus, with proper regulatory filings made with the SEC.

Hercules Capital (NYSE: HTGC) has announced its 2025 Annual Meeting of Stockholders, scheduled for Wednesday, June 18, 2025, at 9:00 a.m. Eastern Time. The meeting will be held virtually via the internet. Stockholders of record as of April 17, 2025, will vote on four key matters: election of three directors, advisory vote on executive compensation, authorization for below-NAV share issuance, and ratification of the independent public accounting firm. The proxy statement was filed on April 24, 2025, and has been mailed to eligible stockholders.

Hercules Capital (NYSE: HTGC) reported strong Q1 2025 financial results, with total gross debt and equity commitments of $1.02 billion and gross fundings of $539.1 million. The company achieved total investment income of $119.5 million and net investment income (NII) of $77.5 million ($0.45 per share), providing 113% coverage of base cash distribution. Notable achievements include a credit rating upgrade to BBB (high) from Morningstar DBRS and completion of a $287.5 million convertible notes offering. The company maintains a conservative balance sheet with net GAAP leverage of 97.4% and manages over $5.0 billion in assets, representing an 11% year-over-year increase. Hercules reported substantial liquidity of over $1.0 billion and an undistributed earnings spillover of $159.6 million ($0.92 per share).

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.

Savara Inc. (SVRA) has secured a non-dilutive debt financing agreement with Hercules Capital for up to $200 million. The initial $30 million will refinance existing debt, with an additional $100 million available upon FDA approval of MOLBREEVI and certain milestones. The remaining $70 million can be accessed at Hercules' discretion.

The five-year loan agreement features a 36-month interest-only period, extendable to 60 months upon FDA approval of MOLBREEVI. This financing follows Savara's Biologics License Application submission to the FDA for MOLBREEVI, a potential first-in-class therapy for autoimmune pulmonary alveolar proteinosis (aPAP). With Priority Review, approval could come by year-end, coinciding with planned European Marketing Authorization Application submission.

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.