Hercules Capital, Inc., a specialty finance provider, announced that effective February 20, 2019, it has replaced its existing $100.0 million credit facility with MUFG Union Bank with a new credit facility under which City National, Umpqua Bank, Hitachi Capital America Corporation and Mutual of Omaha Bank, together with MUFG Union Bank, have committed a total of $200.0 million in credit capacity subject to borrowing base, leverage and other restrictions. The new credit facility also includes an uncommitted accordion feature of $100.0 million. The interest rate applicable to borrowings under the new credit facility has been reduced to LIBOR plus 2.70%. The new credit facility matures in February 2022, plus a 12-month amortization period. The advance rate under the new credit facility has been increased to 55% against eligible loans.

“With the completion of our two recent securitizations totaling $450.0 million, the renewal of our Wells Fargo credit facility of $75.0 million, and our new credit facility accordion with MUFG Union Bank, our combined total potential new liquidity has been greatly enhanced and will allow us to continue to pursue growth of our investment portfolio. We are well positioned to take advantage of our growing and robust new deal pipeline as well as any market dislocations and strategic new potential opportunities that may present itself,” said Manuel A. Henriquez, chairman and chief executive officer of Hercules. “With our new asset coverage ratio increasing our flexibility, we intend to more actively use our banking credit facilities to grow our investment portfolio moving forward, along with our access to the securitization marketplace. We welcome our new commercial bank partners and thank MUFG Union Bank for their long-standing support of our industry-leading franchise, and look forward to continuing our long-term relationship.”