Hercules Capital replaced its existing $100 million credit facility with MUFG Union Bank with a new $200 million credit facility, under which City National, Umpqua Bank, Hitachi Capital America and Mutual of Omaha Bank joined MUFG as lenders.
According to a related 8-K filing, MUFG served as administrative agent and arranger on the facility.
The credit capacity on the new facility is subject to borrowing base, leverage and other restrictions. The new facility also includes an uncommitted accordion feature of $100 million and an interest rate reduced to LIBOR plus 2.70%.
The facility’s advance rate was increased to 55% against eligible loans, and it has a maturity date of February 2022, plus a 12-month amortization period.
“With the completion of our two recent securitizations totaling $450 million, the renewal of our Wells Fargo credit facility of $75 million and our new credit facility accordion, our combined total potential new liquidity has been greatly enhanced and will allow us to continue to pursue growth of our investment portfolio. We are well positioned to take advantage of our growing and robust new deal pipeline as well as any market dislocations and strategic new potential opportunities that may present itself,” said Manuel A. Henriquez, chairman and CEO of Hercules. “With our new asset coverage ratio increasing our flexibility, we intend to more actively use our banking credit facilities to grow our investment portfolio moving forward, along with our access to the securitization marketplace. We welcome our new commercial bank partners and thank MUFG Union Bank for their long-standing support of our industry-leading franchise, and look forward to continuing our long-term relationship.”
