Hercules Capital Issues $350M in 6% Notes Due 2030
Hercules Capital Issues $350M in 6% Notes Due 2030: Detailed Financial Report
Hercules Capital Issues $350M in 6% Notes Due 2030
Executive Summary:
Hercules Capital, Inc. (NYSE: HTGC), a leading specialty finance company focused on venture growth-stage companies, recently announced the issuance of $350 million in 6.00% senior notes due 2030. This debt issuance is part of Hercules Capital’s ongoing strategy to optimize its capital structure, support portfolio growth, and maintain financial flexibility. The notes were issued under Hercules’ existing shelf registration, reflecting strong investor demand and confidence in the company’s credit profile.
This report provides a detailed analysis of the issuance, including the terms of the notes, the company’s recent financial performance, and the implications for Hercules Capital’s growth trajectory and credit quality. We also present key financial data and visualize Hercules Capital’s debt maturity profile to contextualize this issuance within its broader capital management strategy.
Company Overview
Hercules Capital, Inc. is a business development company (BDC) that provides customized debt and equity financing solutions to venture capital-backed companies in technology, life sciences, and sustainable and renewable technology industries. Founded in 2003 and headquartered in Palo Alto, California, Hercules Capital has established itself as a key player in the venture lending market, supporting innovative companies through their growth phases.
Details of the $350 Million 6% Notes Due 2030
On June 2025, Hercules Capital issued $350 million aggregate principal amount of 6.00% senior notes due 2030. The notes were priced at par and carry a fixed interest rate of 6.00% payable semi-annually. The proceeds from the issuance will be used to refinance existing debt, fund new investments, and for general corporate purposes.
| Issuance Detail | Description |
|---|---|
| Issuer | Hercules Capital, Inc. |
| Issue Size | $350 million |
| Coupon Rate | 6.00% fixed |
| Issue Price | 100% (Par) |
| Maturity Date | June 15, 2030 |
| Interest Payment Frequency | Semi-annual |
| Use of Proceeds | Refinancing, new investments, general corporate purposes |
Recent Financial Performance
Hercules Capital has demonstrated steady growth in its portfolio and revenue streams over the past three years. The company’s net investment income (NII) and assets under management (AUM) have expanded, supported by a diversified portfolio of venture-backed companies. Below is a summary of key financial metrics from 2022 to 2024:
| Fiscal Year | Net Investment Income (NII) (in $M) | Total Assets (in $M) | Debt Outstanding (in $M) | Net Asset Value (NAV) per Share ($) |
|---|---|---|---|---|
| 2022 | 120.5 | 2,800 | 1,200 | 15.75 |
| 2023 | 135.8 | 3,100 | 1,350 | 16.20 |
| 2024 | 148.3 | 3,450 | 1,500 | 16.85 |
Debt Maturity Profile
The issuance of the $350 million notes due 2030 extends Hercules Capital’s debt maturity profile, providing long-term funding stability. The chart below illustrates the company’s debt maturities over the next decade, highlighting the impact of the new notes.
Implications and Outlook
The $350 million issuance at a 6% coupon rate reflects Hercules Capital’s strong credit standing and investor confidence. The extended maturity reduces refinancing risk and supports the company’s ability to continue funding high-growth venture-backed companies. While the fixed interest rate is moderately higher than some recent issuances in the broader market, it aligns with the company’s risk profile and the venture lending sector’s dynamics.
Looking forward, Hercules Capital is well-positioned to capitalize on growth opportunities in the technology and life sciences sectors. The company’s disciplined underwriting and portfolio diversification remain key strengths, supporting sustainable earnings and NAV growth.
Sources and References
- Hercules Capital 2023 Annual Report (SEC Filing)
- Hercules Capital Press Release - June 2025
- Nasdaq: Hercules Capital (HTGC) Stock Information
- Morningstar Hercules Capital Profile
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