Hercules Capital Completes $250 Million Securitization



Hercules Capital Funding Trust 2019-1, a newly-formed, wholly-owned, indirect subsidiary of Hercules Capital, issued $250 million in class A notes rated A(sf) by Kroll Bond Rating Agency, backed by approximately $357.2 million of senior secured loans.

Guggenheim Securities acted as arranger of the notes, while Wells Fargo Securities and MUFG Securities Americas acted as co-managers. Hercules is the sponsor, originator and servicer for the transaction.

The notes bear interest at a fixed rate of 4.703%, have a stated maturity date of February 22, 2028, and an expected weighted average life of 3.38 years.

“With the closing of this securitization, we continue to diversify our capital structure and optimize our balance sheet with new sources of lower cost, longer term and flexible financing,” said Manuel A. Henriquez, Hercules chairman and CEO. “With our recent shareholder approval to lower our asset coverage ratio from 200% to 150%, we are prudently optimizing our capital raises to help us continue to execute on our proven venture lending investment strategy and achieve our portfolio growth targets in 2019. We welcome our new noteholders and thank them for their support of our industry leading business.”

Hercules Capital is the largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries.


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