Hercules Technology Growth Capital Announces Investment Portfolio Update for
Q3 2012 With New Originations Totaling More Than $136.0 Million
*Year-to-date new originations of approximately $377.0 million
*Portfolio company Trulia (NYSE: TRLA) completes its IPO
*Four portfolio companies in IPO registration as of September 30, 2012
*Senior notes and equity offering enhance Hercules’ balance sheet and
liquidity position for portfolio growth
PALO ALTO, Calif. -- October 16, 2012
Hercules Technology Growth Capital, Inc. (NYSE: HTGC), the leading specialty
finance company focused on providing senior secured loans to venture
capital-backed companies in technology-related markets, including technology,
biotechnology, life science and cleantech industries, at all stages of
development today announced its Q3 2012 portfolio update. This portfolio
update follows the interim Q3 quarter-to-date update issued on September 11,
“Against a backdrop of continued strong demand for venture debt during the
third quarter, Hercules originated a number of new debt commitments to
innovative portfolio companies, the vast majority of which were late in the
quarter (September), despite continued global economic uncertainty and the
upcoming U.S. elections,” said Manuel A. Henriquez, Hercules co-founder,
chairman and chief executive officer. “In addition, we took significant steps
to bolster and strengthen our balance sheet, adding well over $100 million in
additional liquidity through a diversified mix of senior note and equity
offerings, which will support portfolio growth for the fourth quarter of 2012
Additional New Originations for Q3:
During the third quarter of 2012, Hercules originated approximately $136.0
million of debt and equity commitments to new and existing portfolio
companies. As previously announced, Hercules had originated commitments of
more than$93.0 millionto new and existing portfolio companies from July 1,
2012 to September 11, 2012.
New third quarter investment commitments, completed since September 11, 2012
*$25.0 million commitment to Lanx, a privately held medical device company
focused on developing and commercializing innovative devices for spinal
*$10.0 million commitment to US HIFU, a privately held healthcare company
and a world leader in minimally invasive, high-intensity focused
ultrasound (HIFU) technologies.
*$3.0 million commitment to JackBe, a leading provider of Real-Time
Operational Intelligence software, a new emerging segment of Business
In addition, during this period, Hercules provided $5.4 million in commitments
to existing portfolio companies. Together with the previously announced
commitments to existing portfolio companies of approximately $25.0 million
from July 1, 2012 to September 11, 2012, Hercules provided a total of
approximately $30.4 million in commitments to existing portfolio companies as
of September 30, 2012.
Signed Term Sheets - Additional Future Portfolio Growth Potential:
As of September 30, 2012, Hercules has approximately $133.5 million of signed
non-binding term sheets subject to completion of definitive documentation with
prospective portfolio companies, which generally convert to contractual
commitments within approximately 45 to 60 days. Non-binding term sheets are
subject to completion of Hercules' due diligence, investment committee
approval, legal review and negotiation of definitive documentation. It is
important to note not all signed, non-binding term sheets are expected to
close and do not necessarily represent any future cash requirements or earning
One Portfolio Company Completes IPO:
On September 20, 2012, portfolio companyTrulia completed its IPO and its
shares are trading on the New York Stock Exchange (NYSE) under the symbol
Current Companies in IPO Registration and Existing Warrant Portfolio:
As of September 30, 2012, Hercules had warrant positions in more than 115
different technology, life science and cleantech companies, and four portfolio
companies had filed Form S-1 Registration Statements in contemplation of a
1. iWatt, Inc.
2. Glori Energy, Inc.
3. Paratek Pharmaceuticals, Inc.
4. One company filed a Form S-1 Registration Statement confidentially under
the JOBS Act.
There can be no assurances that these companies will complete their IPOs in a
timely manner or at all.
Capital Raising Activities:
During the quarter, Hercules closed a public offering of approximately $85.0
million in aggregate principal amount of its 7.00 percent Senior Unsecured
Notes due 2019. The September 2019 Notes trade on the New York Stock Exchange
under the new trading symbol “HTGY.”
On October 3, 2012, Hercules closed a public offering of 3.1 million shares of
common stock at a price of $10.85 per share, resulting in proceeds of
approximately $33.6 million, excluding other offering related expenses.
About Hercules Technology Growth Capital, Inc.:
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (“Hercules”), is a
leading specialty finance firm providing loans to technology-related
companies, including technology, life science and cleantech industries at all
stages of development. Since inception (December 2003), Hercules has committed
more than $3.0 billion to more than 210 companies and is the lender of choice
for entrepreneurs and venture capital firms seeking growth capital financing.
Hercules’ common stock trades on the New York Stock Exchange (NYSE) under the
ticker symbol "HTGC."
In addition, Hercules has two outstanding bond issuances of 7.00 percent
Senior Unsecured Notes due 2019, which trade on the NYSE under the symbols
“HTGZ” and “HTGY.”
Companies interested in learning more about financing opportunities should
contact firstname.lastname@example.org, or call 650.289.3060.
The statements contained in this release that are not purely historical are
forward-looking statements. These forward-looking statements are not
guarantees of future performance and are subject to uncertainties and other
factors that could cause actual results to differ materially from those
expressed in the forward-looking statements including, without limitation, the
risks, uncertainties, including the uncertainties surrounding the current
market turbulence, and other factors we identify from time to time in our
filings with the Securities and Exchange Commission. Although we believe that
the assumptions on which these forward-looking statements are based are
reasonable, any of those assumptions could prove to be inaccurate and, as a
result, the forward-looking statements based on those assumptions also could
be incorrect. You should not place undue reliance on these forward-looking
statements. The forward-looking statements contained in this release are made
as of the date hereof, and Hercules assumes no obligation to update the
forward-looking statements for subsequent events.
Hercules Technology Growth Capital, Inc.
Main, 650-289-3060 HT-HN
Sally Borg, 650-289-3066
Merrill Freund or Lauren Whitehouse, 415-512-0770
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