Hercules Capital, Inc. announced that Hercules Capital Funding Trust 2019-1, a newly-formed wholly owned, indirect subsidiary of Hercules, has issued $250.0 million of class A notes rated A(sf) by Kroll Bond Rating Agency, Inc. (KBRA) backed by approximately $357.2 million of senior secured loans. 

Guggenheim Securities, LLC acted as arranger of the Notes, Wells Fargo Securities, LLC and MUFG Securities Americas Inc. acted as co-managers, and Hercules is the sponsor, originator and servicer for the transaction. The Notes bear interest at a fixed rate of 4.703%. The Notes 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, chairman and chief executive officer of Hercules. “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.”