Hercules Capital has replaced its existing $200 million credit facility with MUFG Union Bank with a new $400 million credit facility.
Royal Bank of Canada /City National Bank, Goldman Sachs Bank USA, Umpqua Bank, TIAA, Zions Bancorporation dba California Bank & Trust, HSBC Bank USA, Hitachi Capital and CIT Bank, together with MUFG, have committed a total of $400 million in credit capacity subject to borrowing base, leverage and other restrictions.
The new credit facility includes an uncommitted accordion feature of $200 million. The interest rate applicable to borrowings under the new credit facility has been reduced to LIBOR plus 2.50% and the advance rate under the new credit facility has been increased to a maximum of 65% against eligible loans. The new credit facility matures in February 2023, plus a 12-month amortization period.
“With the announcement of our recent five-year investment grade bond offering totaling $120 million and our new credit facility with MUFG and others, our combined total potential new liquidity has been greatly enhanced and will allow us to continue to pursue growth of our investment portfolio,” said Seth Meyer, chief financial officer of Hercules. “This new credit facility is larger, with improved pricing and flexibility, and is supported by a very strong syndication of existing and new lenders. The further strengthening of our capital and liquidity positions us well to fund the growth of our business and take advantage of market opportunities.”
