Hercules Capital Funding Trust 2018-1, a newly-formed wholly owned subsidiary of specialty finance company Hercules Capital, issued $200 million of class A notes rated A(sf) by Kroll Bond Rating Agency and backed by approximately $286 million of senior secured loans.
Guggenheim Securities acted as arranger of the notes, and Hercules is the sponsor, originator and servicer for the transaction. The notes bear interest at a fixed rate of 4.605%. The notes have a stated maturity date of November 22, 2027 and an expected weighted average life of 3.45 years.
“I am pleased with the exceptionally strong support this transaction received from institutional investors, which is a testament to our proven business model and our strong and diverse asset base,” said Manuel A. Henriquez, chairman and CEO of Hercules. “This transaction reflects Hercules’ continued success in diversifying its capital structure. Year-to-date, Hercules has raised approximately $458 million of new debt and equity capital to fund portfolio growth. The proceeds will expand our sources of capital and provide additional long-term financing to help accelerate growth in our investment portfolio and deliver increased earnings in 2018 and beyond.”