Daily News: January 7, 2019

Hercules Capital Ends 2018 with $1.21B+ in New Investment Financing


Specialty finance company Hercules Capital completed its fourth quarter review for 2018, ending the year with total new investment commitments in excess of $1.21 billion.

“We completed a strong fourth quarter, which resulted in a record-breaking annual originations performance,” said Manuel A. Henriquez, Hercules chairman and CEO. “These 2018 accomplishments exemplify our industry-leading venture debt platform and strong brand recognition within the VC community and underscores our team’s outstanding effort and ability to execute on all fronts to deliver on a truly remarkable year for our shareholders.”

Henriquez continued, “2018 has been a transformative year for Hercules as evidenced by the many amazing accomplishments and critical financial achievements. This year would not have been possible without the unwavering dedication and expertise of our world-class employees, combined with the ongoing support from numerous outstanding partnerships, which include our amazing and ingenious entrepreneurs and their outstanding venture capital sponsors who select Hercules as their capital partner of choice, as well as our investment bankers, rating agencies, shareholders and bondholders. We are truly grateful and thank you for your continued trust. Entering 2019, we maintain a very optimistic outlook and believe we are well positioned to continue to our momentum in the current market environment.”

Other Hercules Q4 2018 highlights included:

  • Received stockholder approval to reduce its asset coverage requirement to 150.0% from 200.0%
  • Received a “For” recommendation from both ISS and Glass Lewis to reduce its asset coverage requirement to 150.0%
  • Was one of the few business development companies to receive such support

Other Hercules full-year 2018 highlights included:

  • Issued $75 million of 5.25% 7-year notes due 2025
  • Issued $40 million of 6.25% 15-year notes due 2033
  • Issued $200 million of 4.605% 3.5-year securitization notes
  • Completed strategic acquisition of ABL platform Gibraltar Business Capital
  • Formed Hercules Capital SaaS Finance Division