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Hercules Capital, Inc. (NYSE:HTGC), a leader in customized debt financing for venture growth stage companies with a market capitalization of $3.09 billion, has entered into a Ninth Supplemental Indenture with U.S. Bank Trust Company, National Association, as trustee, on Monday. The agreement relates to the issuance of $350 million in aggregate principal amount of 6.000% Notes due 2030. According to InvestingPro data, the company maintains a robust dividend yield of 10.63% and has consistently paid dividends for 21 consecutive years.
The notes, offered and sold in a registered public offering, are unsecured and rank senior in right of payment to any future subordinated indebtedness. They are set to mature on June 16, 2030, and interest will be paid semiannually starting December 16, 2025. These notes will not be secured by any of Hercules Capital’s subsidiaries and will rank equally with the company’s existing and future liabilities that are not subordinated. With a P/E ratio of 13.34 and trailing twelve-month revenue of $491.55 million, InvestingPro analysis reveals several additional key metrics and insights available to subscribers.
Hercules Capital has the option to redeem the notes, in whole or in part, at any time at par plus a "make whole" premium, if applicable. The indenture contains certain covenants, including compliance with the Investment Company Act of 1940, as amended, and providing financial information to holders of the notes and the trustee under specific circumstances.
The offering was made pursuant to Hercules Capital’s registration statement on Form N-2, filed with the SEC on December 11, 2024, and supplemented by a prospectus dated June 11, 2025. The transaction closed on June 16, 2025, with the company planning to use the net proceeds to repay outstanding secured indebtedness under its financing arrangements.
Additionally, Hercules Funding IV LLC, a subsidiary of Hercules Capital, entered into a Fourth Amendment to Loan and Security Agreement with MUFG Bank, Ltd. This amendment upsizes the facility from $400 million to $440 million, adjusts interest rates and fees, extends the maturity of the revolving credit facility to June 10, 2029, and modifies the minimum tangible net worth covenant to over $1.1 billion. For detailed analysis of Hercules Capital’s financial health, which InvestingPro rates as GOOD, along with comprehensive valuation metrics and growth prospects, investors can access the full Pro Research Report, available exclusively to subscribers.
This report is based on a press release statement.
In other recent news, Hercules Capital has reported its first-quarter earnings for 2025, revealing a slight miss in earnings per share (EPS) compared to analyst expectations. The company posted an EPS of $0.45, which fell short of the $0.47 forecasted by analysts. Despite this, Hercules Capital demonstrated strong financial performance with total investment income of $119.5 million and a return on equity of 15.7%. The firm also received credit rating upgrades from Morningstar DBRS and Fitch, reflecting confidence in its creditworthiness. Additionally, Hercules Capital’s strategic focus on technology and life sciences sectors continues to drive growth, with these sectors accounting for 53% and 47% of its commitments, respectively. Analyst feedback highlighted the company’s resilience in volatile markets, with CEO Scott Bluestein emphasizing the strategic role of debt capital in supplementing equity capital. Looking ahead, the company expects a core yield of 12-12.5% for the second quarter and anticipates $200-$250 million in prepayment activity. Hercules Capital remains optimistic about its business momentum despite broader market volatility.
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