Hercules Announces Investment Portfolio Update for Q3/12
Hercules Technology Growth Capital announced its Q3/12 portfolio update. This portfolio update follows the interim Q3 quarter-to-date update issued on September 11, 2012.
“Against a backdrop of continued strong demand for venture debt during the third quarter, Hercules originated a number of new debt commitments to innovative portfolio companies, the vast majority of which were late in the quarter (September), despite continued global economic uncertainty and the upcoming U.S. elections,” said Manuel A. Henriquez, Hercules co-founder, chairman and chief executive officer. “In addition, we took significant steps to bolster and strengthen our balance sheet, adding well over $100 million in additional liquidity through a diversified mix of senior note and equity offerings, which will support portfolio growth for the fourth quarter of 2012 and beyond.”
Additional New Originations for Q3:
During the third quarter of 2012, Hercules originated approximately $136 million of debt and equity commitments to new and existing portfolio companies. As previously announced, Hercules had originated commitments of more than $93 million to new and existing portfolio companies from July 1, 2012 to September 11, 2012.
New third quarter investment commitments, completed since September 11, 2012 include:
In addition, during this period, Hercules provided $5.4 million in commitments to existing portfolio companies. Together with the previously announced commitments to existing portfolio companies of approximately $25 million from July 1, 2012 to September 11, 2012, Hercules provided a total of approximately $30.4 million in commitments to existing portfolio companies as of September 30, 2012.
Signed Term Sheets – Additional Future Portfolio Growth Potential:
As of September 30, 2012, Hercules has approximately $133.5 million of signed non-binding term sheets subject to completion of definitive documentation with prospective portfolio companies, which generally convert to contractual commitments within approximately 45 to 60 days. Non-binding term sheets are subject to completion of Hercules’ due diligence, investment committee approval, legal review and negotiation of definitive documentation. It is important to note not all signed, non-binding term sheets are expected to close and do not necessarily represent any future cash requirements or earning assets.
One Portfolio Company Completes IPO:
On September 20, 2012, portfolio company Trulia completed its IPO and its shares are trading on the New York Stock Exchange (NYSE) under the symbol “TRLA.”
Capital Raising Activities:
During the quarter, Hercules closed a public offering of approximately $85 million in aggregate principal amount of its 7.00% senior unsecured notes due 2019. The September 2019 notes trade on the New York Stock Exchange under the new trading symbol “HTGY.”
On October 3, 2012, Hercules closed a public offering of 3.1 million shares of common stock at a price of $10.85 per share, resulting in proceeds of approximately $33.6 million, excluding other offering related expenses.