Welcome to our dedicated page for Hercules Capital news (Ticker: HTGC), a resource for investors and traders seeking the latest updates and insights on Hercules Capital stock.
Hercules Capital, Inc. provides senior secured venture growth loans to high-growth, venture capital-backed and institutional-backed companies, with an emphasis on technology and life sciences industries. Its updates commonly address debt and equity commitments, loan fundings, portfolio-company financings, net investment income, net asset value, leverage, available liquidity and recurring cash distributions.
Hercules also reports developments involving credit ratings, annual meeting and proxy matters, executive leadership, and its asset management activity through Hercules Adviser LLC and related Adviser Funds. The company’s common stock trades on the NYSE under HTGC, and its retail notes trade under HCXY.
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.
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.
KBRA has assigned a BBB+ rating with a Stable outlook to Hercules Capital's (NYSE: HTGC) $250 million 4.75% convertible unsecured notes due September 2028.
The rating reflects HTGC's $3.66 billion investment portfolio comprising 118 portfolio companies, with 86.9% in senior secured first lien venture debt investments focused on technology and life sciences sectors. Key strengths include a 20-year operating history, robust risk management, and a 70.9% unsecured debt ratio.
As of December 31, 2024, the portfolio features investments in Software (29.5%), Drug Discovery & Development (29.5%), Healthcare Services (16.7%), and Consumer & Business Services (10.2%). The company maintains strong metrics with a 1.9 bps annualized loss rate since inception, 0.76x leverage, and 231.7% asset coverage.
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.