Hercules Capital closes $300 million bond offering due 2029

Hercules Capital Inc. (NYSE: HTGC) completed an underwritten public offering of $300 million in 5.350% unsecured notes due February 2029, according to a company statement.

The notes bear interest at 5.350% per year, payable semiannually, and mature on February 10, 2029. The company may redeem the notes in whole or in part at any time at par plus a make-whole premium if applicable.

Moody's Investors Service assigned the notes an initial rating of Baa2, while Fitch Ratings assigned a BBB- rating.

Hercules plans to use the net proceeds to fund investments aligned with its investment objectives, repay outstanding secured debt under existing financing arrangements, and for general corporate purposes.

Goldman Sachs & Co. LLC, SMBC Nikko Securities America Inc., and MUFG Securities Americas Inc. served as joint book-running managers. Citizens JMP Securities LLC, DZ Financial Markets LLC, RBC Capital Markets LLC, Synovus Securities Inc., and Zions Direct Inc. acted as co-managers.

San Mateo, California-based Hercules Capital focuses on providing senior secured venture growth loans to venture capital-backed companies in technology and life sciences sectors. Since its inception in December 2003, the company has committed more than $25 billion to over 700 companies.

The specialty finance company also operates an asset management business through its wholly owned subsidiary Hercules Adviser LLC, which manages investments for external parties.

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