Hercules Capital expanded its credit facility with Wells Fargo Capital Finance. AloStar Bank has committed $20 million to the facility, for a total of $95 million in credit capacity under a $300 million accordion credit facility, subject to borrowing base, leverage and other restrictions.
Borrowings under the enhancement maintain the current interest rate of LIBOR plus 3.25% with no floor and a maturity date to August 2018, plus a 12-month amortization period. The advance rate of 50% against eligible loans remains the same.
“We continue to position our capital stack to optimize the efficiency of our capital and work to lower our cost of debt,” stated Mark R. Harris, chief financial officer of Hercules. “We are very proud to have AloStar join this facility and look forward to working with them. We see AloStar’s commitment as a critical step in moving to the next level of growth.”
Hercules Capital a specialty finance company focused on providing senior secured venture growth loans.