Hercules Capital, Inc. the largest and leading specialty finance provider to innovative, venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that effective February 20, 2020, it has replaced its existing $200.0 million credit facility with MUFG Union Bank N.A. (“MUFG”) with a new credit facility under which Royal Bank of Canada /City National Bank, a National Banking Association, Goldman Sachs Bank USA, Umpqua Bank, TIAA, FSB, Zions Bancorporation, N.A., dba California Bank & Trust, HSBC Bank USA, N.A., Hitachi Capital America Corporation and CIT Bank, N.A., together with MUFG, have committed a total of $400.0 million in credit capacity subject to borrowing base, leverage and other restrictions.

The new credit facility also includes an uncommitted accordion feature of $200.0 million. The interest rate applicable to borrowings under the new credit facility has been reduced to LIBOR plus 2.50% and the advance rate under the new credit facility has been increased to a maximum of 65% against eligible loans. The new credit facility matures in February 2023, plus a 12-month amortization period.

“With the announcement of our recent 5-year investment grade bond offering totaling $120.0 million and our new credit facility with MUFG and others, our combined total potential new liquidity has been greatly enhanced and will allow us to continue to pursue growth of our investment portfolio,” said Seth Meyer, chief financial officer of Hercules. “This new credit facility is larger, with improved pricing and flexibility, and is supported by a very strong syndication of existing and new lenders. The further strengthening of our capital and liquidity positions us well to fund the growth of our business and take advantage of market opportunities.”

Scott Bluestein, chief executive officer and chief investment officer of Hercules added, “Reducing our cost of capital and improving operational flexibility is a priority for us and this new facility accomplishes both. We welcome each of our new lenders and thank our existing bank partners and MUFG for their long-standing support of our industry-leading franchise, and look forward to continuing our long-term relationship.”