Specialty finance company Hercules Capital renewed its credit facility with Wells Fargo Capital Finance. WFCF has committed an initial $75 million in credit capacity under the $125 million accordion credit facility, subject to borrowing base, leverage and other restrictions, effective January 11, 2019.
Borrowings under the amended facility reduce the current interest rate to LIBOR plus 3.00%, with a natural floor of 3.00% and a maturity date to January 2022, plus a 12-month amortization period. The advance rate increased to 55% against eligible loans.
“I am delighted to report that we have once again renewed our $125 million accordion credit facility with our long-standing banking partner, Wells Fargo Capital Finance,” said Manuel A. Henriquez, Hercules chairman and CEO. “With our recent shareholder approval to lower our asset coverage ratio from 200% to 150%, which effectively increases the company’s upper leverage limit, we intend to more actively use our banking credit facilities to grow our investment portfolio than in the prior years. We look forward to continuing our long-term relationship with Wells Fargo and to expanding our accordion facility over time as needed.”
