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Hercules Technology Growth Capital Announces First Quarter 2013 Financial Results and Raises Quarterly Cash Dividend to $0.27

  Hercules Technology Growth Capital Announces First Quarter 2013 Financial
  Results and Raises Quarterly Cash Dividend to $0.27 per Share, up $0.02 From
  Fourth Quarter 2012, an Increase of Approximately 8.0%

  *Record high total investment income of $31.0 million, up 38.4% from Q1
    2012
  *Record high total investment assets of approximately $968.0 million up
    39.4% from Q1 2012
  *Q1 total commitments of approximately$224.0 million, an increase of
    121.1% from Q1 2012
  *Q1 2013 NII of approximately$15.0 million, or$0.27per share, up 31.6%
    from Q1 2012
  *Q1 DNOI of $16.2 million, or $0.30per share, up 32.8% from Q1 2012
  *Strong liquidity position with approximately $311.9 million available at
    quarter end
  *Kroll Bond Rating Agency ("KBRA") assigned an investment grade corporate
    rating of BBB+; outstanding Senior Unsecured Notes also rated BBB+

Business Wire

PALO ALTO, Calif. -- May 2, 2013

Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (“Hercules” or the
“Company”), 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, announced today its financial
results for the first quarter ended March 31, 2013.

The Company also announced that its Board of Directors has declared a first
quarter cash dividend of $0.27 per share, that will be payable on May 21,
2013, to shareholders of record as of May 14, 2013.

First Quarter 2013 Highlights:

  *Originated approximately $224.0 million in total debt and equity
    commitments to new and existing portfolio companies, up 121.1% compared
    tothe first quarter of 2012.
  *Funded approximately $138.3 million of debt and equity investments during
    the first quarter, includingapproximately $35.0 million related to the
    renewal of an existing debt investment, an increase of 112.9% compared
    tothe first quarter of 2012.

  *Received approximately $76.0 million in principal repayments,
    includingapproximately $35.0 millionof principal repayments related to a
    renewal of an existing debt investment, $9.1 million of early principal
    repayments andapproximately $31.9 millionin scheduled principal
    payments.
  *Record high total investment income of approximately $31.0 million, an
    increase of 38.4%, in the first quarter of 2013, compared to$22.4
    millionfor the first quarter of 2012.
  *Increased NII during the quarter by 31.6% to approximately $15.0 million,
    as compared to $11.4 million in the first quarter of 2012. NII per share
    was $0.27 on approximately 53.7 million outstanding shares for the first
    quarter of 2013 compared with NII of $0.24 per share for the first quarter
    of 2012.
  *Increased DNOI by 32.8% to approximately $16.2 million compared to
    $12.2million in the first quarter of 2012. DNOI per share was $0.30 on
    approximately 53.7 million outstanding shares for the first quarter of
    2013 compared with DNOI of $0.26 per share for the first quarter of 2012.
  *Record high total investment assets increased 39.4% year over year to
    approximately $968.0 million as of March 31, 2013, compared to $694.5
    million as of March 31, 2012.
  *Increased the quarterly dividend by $0.02, or approximately 8.0%, to$0.27
    per share payable on May 21, 2013, to shareholders of record as of May 14,
    2013; the thirty-first consecutive dividend since inception bringing total
    dividends declared since inception to $8.16 per share.

“Our first quarter results reflect a great start to 2013.Our investment
assets grew 39.4% year-over-year to nearly the billion dollar mark which has
translated into record total investment income for the quarter and increased
dividends for our shareholders,” said Manuel A. Henriquez, President and Chief
Executive Officer of Hercules. “Our warrant portfolio, representing
investments in 117 venture backed companies, five of which are on file with
the SEC Form S-1 registration statements to complete their initial public
offerings, provides additional potential value to our shareholders.”

Henriquez, continued, “We see strong demand for venture capital investments in
the marketplace but will remain focused on maintaining our conservative
underwriting discipline for controlled growth of our investment portfolio. We
are well positioned with a strong balance sheet and ample liquidity from which
to grow our investment portfolio of America's most innovative and highly
disruptive venture capital-backed companies in 2013."

First Quarter Review and Operating Results

Investment Portfolio

As of March 31, 2013, 98.5% of the Company’s debt investments were in a senior
secured first lien position, and 98.8% of the debt investment portfolio was
priced at floating interest rates or floating interest rates with a Prime or
LIBOR based interest rate floor, well positioned to benefit should market
rates move in either direction.

Hercules entered into commitments to provide debt and equity financings of
approximately$224.0 million to new and existing portfolio companies, which
includes a $35.0 million renewal of an existing debt investment, during the
first quarter.

The Company funded approximately $138.3millionof debt and equity investments
to new and existing portfolio companies, which includes $35.0 million related
to the renewal of an existing debt investment, during the first quarter.

Hercules received approximately $76.0 million in principal repayments,
includingapproximately $35.0 millionof principal repayments related to a
renewal of an existing debt investment, $9.1 million of early principal
repayments andapproximately $31.9 millionin scheduled principal payments.

Net investment growth on Hercules’ portfolio was approximately $63.4million
on a cost basis for the first quarter, which includes approximately $1.1
million of net fee accretion.

Hercules recorded approximately $1.7 million of net unrealized depreciation
from its loans, warrant and equity investments during the first quarter.

A break-down of the Company’s total investment portfolio valued at cost and
fair value by category, quarter over quarter, is highlighted below:

(in millions)                     Loans      Equity    Warrants  Total
Balances at Cost at 12/31/12       $ 833.2    $ 49.0    $ 32.1    $ 914.3 
Net activity during Q1 2013*        60.7      2.6      0.1      63.4  
Balances at Cost at 03/31/2013     $ 893.9    $ 51.6    $ 32.2    $ 977.7 
Q/Q Change in Cost                  7.3   %    5.3  %    0.2  %    6.9   %
                                                                     
                                   Loans      Equity    Warrants   Total
Balances at Value at 12/31/2012    $ 827.5   $ 49.2   $ 29.6    $ 906.3 
Net activity during Q1 2013*         60.7        2.6        0.1        63.4
Net unrealized appreciation /       (7.2  )    1.9      3.6      (1.7  )
(depreciation)
Balances at Value at 03/31/2013    $ 881.0    $ 53.7    $ 33.3    $ 968.0 
Q/Q Change in Value                 6.5   %    9.2  %    12.5 %    6.8   %
                                                                     
*Net activity includes fee and OID collections and amortization during the
quarter

Unfunded Commitments

As of March 31, 2013, Hercules had unfunded debt commitments of approximately
$137.1 million. Since these commitments may expire without being drawn upon,
unfunded commitments do not necessarily represent future cash requirements or
future earning assets for Hercules. Approximately $83.6 million of these
unfunded commitments are dependent upon the portfolio company reaching certain
milestones before the Hercules debt commitment would become available.

Signed Term Sheets

Hercules finished the first quarter of 2013 with approximately $93.0 million
in signed non-binding term sheets with seven new and existing companies. These
non-binding term sheets generally convert to contractual commitments in
approximately 45 to 60 days from signing. Non-binding outstanding term sheets
are subject to completion of Hercules’ due diligence and final approval
process as well as negotiation of definitive documentation with the
prospective portfolio companies. It is important to note that not all
non-binding term sheets are expected to close and do not necessarily represent
future cash requirements. Closed commitments generally fund 70-80% of the
committed amount in aggregate over the life of the commitment.

Portfolio Effective Yield

The effective yield on the Company’s debt portfolio investments during the
first quarter was 14.3%. Excluding the effect of fee accelerations that
occurred from early payoffs and one-time events, the adjusted effective yield
for the first quarter of 2013 was 13.8%, up approximately 20 basis points from
the adjusted effective yield in the fourth quarter of 2012 of 13.6%. The
effective yield is derived by dividing total investment income by the weighted
average earning investment portfolio assets outstanding during the quarter
which exclude non-interest earning assets such as warrants and equity
investments.

Existing Warrants Portfolio and Potential Future Gains

Hercules held warrant positions in approximately 117 portfolio companies, with
a fair value of approximately $33.3 million at March 31, 2013.

As ofMarch 31, 2013, five portfolio companies had filed Form S-1 Registration
Statements with the SEC in contemplation of a potential initial public
offering:

1. ADMA Biologics, Inc.

2. iWatt, Inc.

3. Omthera Pharmaceuticals, Inc. (completed its initial public offering “IPO”
April 2013)

4. Paratek Pharmaceuticals, Inc.

5. One company filed a Form S-1 Registration confidentially under the JOBS Act

There can be no assurances that these companies will complete their IPOs in a
timely manner or at all.

Subsequent to quarter end, one additional portfolio company filed its Form S-1
Registration Statement with the SEC:

1. Portola Pharmaceuticals, Inc.

Income Statement

Total investment income in the first quarter of 2013 was approximately $31.0
million compared to approximately $22.4 million in the first quarter of 2012.

Interest expense and loan fees were approximately $8.7 million during the
first quarter of 2013 as compared to $5.0 million in the first quarter of
2012.

The Company had a weighted average cost of debt comprised of interest and fees
of approximately 5.9% in the first quarter of 2013 versus 6.8% during the
first quarter of 2012.

Total operating expenses, excluding interest expense and loan fees, for the
first quarter of 2013 was $7.2 million as compared to $6.0 million for the
first quarter of 2012.

During the first quarter of 2013, the Company recorded approximately $1.7
million of net unrealized depreciation from its loans, warrant and equity
investments. Of the $1.7 million of unrealized depreciation, $4.8 million of
appreciation was due to market or yield adjustments in fair value
determinations, $5.7 million of depreciation was primarily attributable to
collateral based impairments on investments in three portfolio companies and
$800,000 of depreciation was related to sales of warrant and equity
investments.

A break-down of the net unrealized depreciation in the investment portfolio is
highlighted below:

                                                                   
                                          Three Months Ended March 31, 2013
(in millions)                             Loans     Equity   Warrants   Total
                                                                        
Collateral based impairments              $ (5.7)   $ -      $ -        $(5.7)
Reversals of Prior Period Collateral      -         -        -          -
based impairments
                                                                        
Reversals due to Warrant/Equity sales     -         0.2      (1.0)      (0.8)
and write-offs
Reversals due to Loan Payoffs             -         -        -          -
                                                                        
Fair Value Market/Yield Adjustments
Level 1 & 2 Assets                        -         0.1      0.2        0.3
Level 3 Assets                            (1.5)     1.6      4.4        4.5
Total Fair Value Market/Yield             (1.5)     1.7      4.6        4.8
Adjustments
                                                                     
Total Investment Unrealized               $ (7.2)   $ 1.9    $ 3.6      $(1.7)
Appreciation/(Depreciation)

Hercules recognized net realized gains of approximately $2.0 million during
the first quarter of 2013, including $3.6 million of gains from the sale of
investments in three portfolio companies partially offset by the liquidation
of the Company’s investments in five portfolio companies of approximately $1.6
million.

Cumulative net realized losses on investments since October 2004 to date total
approximately $45.0 million, on a GAAP basis. When compared to total
commitments of approximately $3.6 billion over the same period, the net
realized loss since inception represents approximately 1.3% of total
commitments or an annualized loss rate of approximately 15 basis points.

NII – Net Investment Income

NII for the first quarter of 2013 was approximately $15.0 million, compared to
$11.4million in the first quarter of 2012, representing an increase of
approximately 31.6%. NII per share increased 12.5% for the first quarter of
2013, to $0.27 based on 53.7 million basic weighted shares outstanding,
compared to $0.24 based on 47.0 million basic weighted shares outstanding in
the first quarter 2012.

DNOI - Distributable Net Operating Income

DNOI for the first quarter was approximately $16.2 million or $0.30 per share,
as compared to $12.2 million or $0.26 per share in the first quarter of 2012.
DNOI measures Hercules’ operating performance exclusive of employee stock
compensation, which represents expense to the Company but does not require
settlement in cash. DNOI does include paid-in-kind, or “PIK”, and back-end
fees that generally are not payable in cash on a regular basis but rather at
investment maturity. Hercules believes disclosing DNOI and the related per
share measures are useful and appropriate supplements and not alternatives to
GAAP measures for net operating income, net income, earnings per share and
cash flows from operating activities.

Dividends

The Board of Directors increased the quarterly dividend by $0.02, or
approximately 8.0%, and has declared a first quarter cash dividend
of$0.27per share that will be payable onMay 21, 2013 to shareholders of
record as ofMay 14, 2013. This dividend would represent the Company’s
thirty-first consecutive dividend declaration since its initial public
offering, bringing the total cumulative dividend declared to date to $8.16 per
share.

Hercules' Board of Directors maintains a variable dividend policy with the
objective of distributing four quarterly distributions in an amount that
approximates 90 - 100% of our taxable quarterly income or potential annual
income for a particular year. In addition, at the end of the year, we may also
pay an additional special dividend or fifth dividend; such that we may
distribute approximately all of our annual taxable income in the year it was
earned, while maintaining the option to spill over our excess taxable income.

The determination of the tax attributes of the Company's distributions is made
annually as of the end of the Company's fiscal year based upon its taxable
income for the full year and distributions paid for the full year. Therefore,
a determination made on a quarterly basis may not be representative of the
actual tax attributes of its distributions for a full year. If the Company had
determined the tax attributes of our distributions year-to-date as of March
31, 2013, approximately 100.0% would be from ordinary income and spillover
earnings from 2012. However there can be no certainty to shareholders that
this determination is representative of what the tax attributes of its 2013
distributions to shareholders will actually be.

Share Repurchases

Hercules’ share repurchase program expired in February 2013. During the first
quarter of 2013 the Company did not repurchase shares of its common stock
under this program.

Liquidity and Capital Resources

The Company ended the first quarter with approximately$311.9 million in
available liquidity, including $206.9 million in cash and $105.0 million in
credit facility availability.

In March 2013, Hercules closed a public offering of 8.1 million shares of its
common stock at a price of $11.90per share, resulting in gross proceeds of
approximately$95.8 million,before deducting estimated offering expenses.

As of March 31, 2013, Hercules did not have any outstanding borrowings under
theWells Fargo credit facility. Hercules has a committed credit facility
withWells Fargofor approximately $75.0 millionin initial credit capacity
under a$300.0 millionaccordion credit facility. Additional lenders may be
added to the facility over time to reach up to an aggregate of$300.0 million.
We expect to continue discussions with various other potential lenders to join
the Wells facility; however, there can be no assurances that additional
lenders will join the facility.

Pricing atMarch 31, 2013under theWells Fargocredit facility was
LIBOR+3.50% with a floor of 4.25%.

Hercules has access to $30.0 million under the Union Bank facility. As of
March 31, 2013, Hercules did not have any outstanding borrowings under
theUnion Bank credit facility.

Pricing atMarch 31, 2013under theUnion Bank credit facility is LIBOR+2.25%
with a floor of 4.0%.

AtMarch 31, 2013, Hercules had approximately$225.0 millionin outstanding
debentures under the SBIC program, which is the maximum amount of debentures
allowed under the SBIC program.

Hercules’ debt to equity, or leverage, ratio at March 31, 2013 was
approximately 95.4%. However, if the outstanding cash at March 31, 2013 of
approximately $206.9 million was deducted from total debt of approximately
$587.1 million and divided by total equity of approximately $615.6 million,
then the net leverage ratio would be approximately 61.8%. Hercules has an SEC
exemptive order to exclude all SBA debentures from its regulatory leverage
calculations. Given the SEC exemptive order relief, the Company has the
potential capacity on its balance sheet to leverage an additional $253.4
million, bringing the maximum potential leverage to $840.6 million, or
approximately 136.5%, as of March 31, 2013.

As of March 31, 2013, the Company’s asset coverage ratio under our regulatory
requirements as a business development company was 329.1%, excluding the SBIC
debentures as a result of our exemptive order from the SEC.

Net Asset Value

At March 31, 2013, the Company’s net assets were approximately $615.6 million,
an increase of 26.8% as compared to $485.4 million as of March 31, 2012 and
$516.0 million as of December 31, 2012.

As of March 31, 2013, net asset value per share was $10.00 on 61.6 million
outstanding shares, compared to $9.76 on 49.7 million outstanding shares and
$9.75 on 52.9 million outstanding shares as of March 31, 2012 and December 31,
2012, respectively.

Portfolio Asset Quality

As of March 31, 2013, grading of the loans portfolio at fair value, excluding
warrants and equity investments, was as follows:

Grade 1       $154.8 million or 17.6% of the total portfolio
Grade 2             $580.8 million or 65.9% of the total portfolio
Grade 3             $134.6 million or 15.3% of the total portfolio
Grade 4             $5.3 million or 0.6% of the total portfolio
Grade 5             $5.5 million or 0.6% of the total portfolio

At March 31, 2013, the weighted average loan grade of the portfolio was 2.03
on a scale of 1 to 5, with 1 being the highest quality, compared with 2.06 as
of December 31, 2012 and 2.08 as of March 31, 2012. Hercules’ policy is to
generally adjust the grading down on its portfolio companies as they approach
the need for additional equity capital.

Subsequent Events

1. As of April 29, 2013, Hercules has:

a. Closed commitments of approximately $20.0 million to new and existing
portfolio companies, and funded approximately $28.0 millionsince the close of
the first quarter.

b. Pending commitments (signed non-binding term sheets) of approximately
$179.0 million.

The table below summarizes our year-to-date closed and pending commitments as
follows:

Closed Commitments and Pending Commitments (in millions)
Q1-13 Closed Commitments                           $224.0
Q2-13 Closed Commitments (as of April 29, 2013)    $20.0
Total 2013 Closed Commitments ^ (a)                $244.0
Pending Commitments (as of April 29, 2013)^(b)     $179.0
Year-to-date 2013 Closed and Pending Commitments   $423.0

Notes:

a. Closed Commitments may include renewals of existing credit facilities. Not
all Closed Commitments result in future cash requirements. Commitments
generally fund over the two succeeding quarters from close.

b. Not all pending commitments (signed non-binding term sheets) are expected
to close and do not necessarily represent any future cash requirements.

2. In April 2013, Japanese company Ajinomoto Co., Inc. (TYO: 2802) completed
its acquisition of Hercules portfolio company Althea Technologies.

3. In April 2013, Hercules portfolio company Portola Pharmaceuticals, Inc.,
filed its initial public offering "IPO" Form S-1 registration statement to
complete its initial public offering.

4. In April 2013, Omthera Pharmaceuticals, Inc., (“OMTH”) completed its
initial public offering of 8,000,000 shares of its common stock at $8.00 per
share.

5. Kroll Bond Rating Agency ("KBRA") has assigned Hercules an investment grade
corporate rating of BBB+. In addition, the Company’s two outstanding bond
issuances of 7.00% Senior Notes due 2019, which trade on the NYSE under the
symbols “HTGZ” and “HTGY,” were assigned a rating of BBB+. Earlier today, KBRA
issued a statement announcing the issuance of the ratings and discussing the
underlying analyses.

Conference Call

Hercules has scheduled its first quarter 2013 financial results conference
call for May 2, 2013 at 2:00 p.m. PST (5:00 p.m. EST). To listen to the call,
please dial (877) 304-8957 or (408) 427-3709 internationally approximately 10
minutes prior to the start of the call. A taped replay will be made available
approximately three hours after the conclusion of the call and will remain
available for seven days. To access the replay, please dial (855) 859-2056 or
(404) 537-3406 and enter the passcode 35896020.

About Hercules Technology Growth Capital, Inc.:

Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (“Hercules”) is 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. Since inception (December 2003), Hercules has committed more
than $3.6 billion to over 230 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% Senior Notes
due 2019—the April 2019 Notes and September 2019 Notes—which trade on the NYSE
under the symbols “HTGZ” and “HTGY,” respectively.

Companies interested in learning more about financing opportunities should
contact info@htgc.com, or call 650.289.3060.

Forward-Looking Statements:

The information disclosed in this release is made as of the date hereof and
reflects Hercules most current assessment of its historical financial
performance. Actual financial results filed with the Securities and Exchange
Commission may differ from those contained herein due to timing delays between
the date of this release and confirmation of final audit results. 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 volatility, 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.
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
                                                                 
                                                                 
                                                 March 31,       December 31,
                                                 2013
(dollars in thousands, except per share data)                   2012
                                                 (unaudited)
Assets
Investments:
Non-control/Non-affiliate investments            $ 953,788       $ 894,428
Affiliate investments                             14,196        11,872    
Total investments, at value                        967,984         906,300
Cash and cash equivalents                          206,928         182,994
Restricted Cash                                    810             -
Interest receivable                                9,674           9,635
Other assets                                      25,790        24,714    
Total assets                                     $ 1,211,186    $ 1,123,643 
                                                                 
Liabilities
Accounts payable and accrued liabilities         $ 8,456         $ 11,575
Long-term Liabilities (Convertible Senior          71,707          71,436
Notes)
Asset-Backed Notes                                 120,051         129,300
2019 Notes                                         170,364         170,364
Long-term SBA Debentures                          225,000       225,000   
Total liabilities                                 595,578       607,675   
                                                                 
                                                                 
Net assets consist of:
Common stock, par value                            62              53
Capital in excess of par value                     660,833         564,508
Unrealized depreciation on investments             (8,281    )     (7,947    )
Accumulated realized losses on investments         (34,925   )     (36,916   )
Distributions in excess of investment income      (2,081    )    (3,730    )
Total net assets                                  615,608       515,968   
Total liabilities and net assets                 $ 1,211,186    $ 1,123,643 
                                                                 
Shares of common stock outstanding ($0.001 par     61,554          52,925
value, 100,000,000 authorized)
Net asset value per share                        $ 10.00         $ 9.75
                                                                             

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
                                                                
                                                  Three Months Ended March 31,
                                                  2013
                                                                    2012
                                                  (unaudited)
Investment income:
Interest Income
Non Control/Non Affiliate investments                 28,319           20,281
Affiliate investments                                 610              6
Control investments                                  -              13
Total interest income                                28,929         20,300
Fees
Non Control/Non Affiliate investments                2,028          2,067
Total fees                                           2,028          2,067
                                                                    
Total investment income                              30,957         22,367
Operating expenses:
Interest                                              7,631            3,896
Loan fees                                             1,079            1,076
General and administrative                            2,252            1,817
Employee Compensation:
Compensation and benefits                             3,798            3,395
Stock-based compensation                             1,165          808
Total employee compensation                          4,963          4,203
Total operating expenses                             15,925         10,992
Net investment income                                 15,032           11,375
Net realized (losses) gains on investments
Non Control/Non Affiliate investments                1,991          2,877
Total net realized (loss)gain on investments          1,991            2,877
Net increase (decrease) in unrealized
appreciation on investments
Non Control/Non Affiliate investments                 (768    )        1,751
Affiliate investments                                 434              1,076
Control investments                                  -              26
Total net unrealized (depreciation)                  (334    )       2,853
appreciation on investments
Total net realized (unrealized) gain                  1,657            5,730
Net increase in net assets resulting from         $   16,689        $  17,105
operations
Net investment income before investment gains
and losses per common share:
Basic                                             $   0.27          $  0.24
Change in net assets per common share:
Basic                                             $   0.30          $  0.36
Diluted                                           $   0.30          $  0.36
Weighted average shares outstanding
Basic                                                 53,682           47,018
Diluted                                               53,823           47,210
                                                                       

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

NON GAAP FINANCIAL MEASURES

(in thousands, except per share data)
                                    Three Months Ended March 31,
                                     2013                    2012
Reconciliation of Adjusted NII
to Net Investment Income
Net Investment Income                $    15,032              $   11,375
Dividends paid on unvested               (331      )            (276     )
restricted shares (1)
Net investment income, net of
dividends paid on unvested           $    14,701              $   11,099
restricted shares
                                                              
Adjusted net investment income
before investment gains and
losses
per common share: (2)
Basic                                $    0.27               $   0.24     
                                                              
Weighted average shares
outstanding
Basic                                    53,682                47,018   
                                                              
                                                              
                                     Three Months Ended March 31,
                                     2013                     2012
Reconciliation of Adjusted NII
to Change in Net Assets
Net increase in net assets           $    16,689              $   17,105
resulting from operations
Dividends paid on unvested               (331      )            (276     )
restricted shares (1)
Net increase in net assets
resulting from operations, net       $    16,358              $   16,829
of dividends paid on unvested
restricted shares
                                                              
Adjusted Change in net assets
per common share (3)
Basic                                $    0.30               $   0.36     
                                                              
Weighted average shares
outstanding
Basic                                    53,682                47,018   
                                                              
(1) Unvested restricted shares as of the dividend record date in the first
quarter of 2013 and 2012 was approximately 1.3 million and 1.2 million,
respectively.
(2) Adjusted net income per share is calculated as Net investment income per
share, adding dividends paid on unvested restricted shares to the amounts of
income and losses allocated to common shareholders.
(3) Adjusted change in net assets per share is calculated as Net investment
income per share, adding dividends paid on unvested restricted shares to the
amounts of income and losses allocated to common shareholders.

Adjusted net investment income per basic share, ”Adjusted NII”, and Adjusted
change in net assets per basic share, consists of GAAP net investment income,
excluding the impact of dividends paid on unvested restricted common stock
divided by the weighted average basic and fully diluted share outstanding for
the period under measurement. For reporting purposes, Hercules calculates net
investment income per share and change in net assets per share on a basic and
fully diluted basis by applying the two-class method, under GAAP. This GAAP
method excludes unvested restricted shares and the pro rata earnings
associated with the shares from per share calculations.

Hercules believes that providing Adjusted NII affords investors a view of
results that may be more easily compared to other companies and enables
investors to consider the Company’s results on both a GAAP and Adjusted basis.
Adjusted NII should not be considered as an alternative to, as an independent
indicator of the Company’s operating performance, or as a substitute for Net
Investment Income per basic and diluted share (each computed in accordance
with GAAP). Instead, Adjusted NII should be reviewed in connection with
Hercules’ consolidated financial statements, to help analyze how the Company
is performing. Investors should use Non-GAAP measures only in conjunction with
its reported GAAP results.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

NON GAAP FINANCIAL MEASURES

(in thousands, except per share data)
                                                 Three Months Ended March 31,
Reconciliation of DNOI to Net investment income   2013            2012
Net investment income                             $   15,032       $   11,375
Stock-based compensation                             1,165           808
DNOI                                              $   16,197       $   12,183
                                                                   
DNOI per share-weighted average common shares
Basic                                             $   0.30         $   0.26
                                                                   
Weighted average shares outstanding
Basic                                                53,682          47,018

Distributable Net Operating Income, “DNOI” represents net investment income as
determined in accordance with U.S. generally accepted accounting principles,
or GAAP, adjusted for amortization of employee restricted stock awards and
stock options. Hercules views DNOI and the related per share measures as
useful and appropriate supplements to net operating income, net income,
earnings per share and cash flows from operating activities. These measures
serve as an additional measure of Hercules’ operating performance exclusive of
employee restricted stock amortization, which represents expenses of the
Company but does not require settlement in cash. DNOI does include
paid-in-kind, or PIK, interest and back end fee income which are generally not
payable in cash on a regular basis, but rather at investment maturity or when
declared. DNOI should not be considered as an alternative to net operating
income, net income, earnings per share and cash flows from operating
activities (each computed in accordance with GAAP). Instead, DNOI should be
reviewed in connection with net operating income, net income (loss), earnings
(loss) per share and cash flows from operating activities in Hercules’
consolidated financial statements, to help analyze how Hercules’ business is
performing.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

NON GAAP FINANCIAL MEASURES

(in thousands, except per share data)
                                                           Three Months Ended
                                                            March 31, 2013
Total Debt                                                  $   587,122
Cash and cash equivalents                                      (206,928   )
Numerator: net debt (total debt less cash and cash          $   380,194
equivalents)
                                                            
Denominator: Total net assets                               $   615,608
Net Leverage Ratio                                              61.8       %

Net leverage ratio is calculated by deducting the outstanding cash at March
31, 2013 of approximately $206.9 million from total debt of approximately
$587.1 million divided by our total equity of approximately $615.6 million,
resulting in a net leverage ratio of 61.8%. These measures are not intended to
replace financial performance measures determined in accordance with GAAP.
Rather, they are presented as additional information because management
believes they are useful indicators of the current financial performance of
the Company’s core businesses.

Contact:

Hercules Technology Growth Capital, Inc.
Sally Borg
Main, 650.289.3060 HT-HN
sborg@htgc.com
or
Market Street Partners
Linda Wells, 415-445-3236
Linda@marketstreetpartners.com