Hercules Announces Over $630 Million of Commitments in 2011
Hercules Technology Growth Capital, Inc., a specialty finance company addressing the capital needs of technology-related venture capital and private equity-backed companies, including cleantech, life sciences and technology companies, announced its fourth quarter 2011 portfolio update.
New Originations in the Fourth Quarter of 2011
In the fourth quarter, Hercules entered into an agreement to acquire approximately $9.6 million through a secondary marketplace in Facebook, Inc., the social networking company, on December 13, 2011 and December 20, 2011 for an aggregate of 307,500 shares at an average price of $31.08 per share. The investments are subject to certain closing conditions and a right of first refusal by Facebook, which expires 30 days after the date of investment. As a result, there is no assurance that the investment in Facebook, Inc. will close in a timely fashion or at all.
New Loan Originations in the Fourth Quarter of 2011
In the fourth quarter, Hercules originated loan commitments of approximately $165 million to new and existing portfolio companies. Hercules new investments include:
2011 Total Commitments
In 2011, Hercules closed total loan commitments of approximately $630 million, an increase of over 20% from 2010.
Inception Through Year-End 2011 Total Commitments
Since its inception through December 31, 2011, Hercules has extended debt and equity commitments to portfolio companies totaling approximately $2.7 billion to over 190 companies.
Liquidity Events and Current Companies in IPO Registration
In the fourth quarter of 2011, Covidien plc announced its acquisition of Hercules’ portfolio company, BARRX Medical for an aggregate consideration of approximately $325 million, net of cash and short-term investments. The transaction closed on January 5, 2012.
As of January 17, 2012, Hercules had warrant positions in over 104 different technology-related companies, nine of which have Form S-1 registration statements filed with the SEC in anticipation of completing a potential initial public offering or IPO. However, there can be no assurances that any of these companies will complete their respective IPO in a timely manner or at all.