Hercules Capital Expanded Its Credit Facility With Wells Fargo

Hercules Capital Inc

disclosed in a press statement that it has expanded its credit facility with Wells Fargo & Co

unit, Wells Fargo Capital Finance. According to the company, the move enabled it to get a finance commitment of $25.0 million from EverBank. Also, the current agreement extended for a total of $120.0 million credit capacity under a $300.0 million facility. Hercules Capital said that there was no change in the existing interest rate of LIBOR plus 3.25% with no floor, as well as, a maturity date to August 2018 apart from one-year amortization period. Also, the specialty financing provider indicated that there was no change in the advance rate of 50%. The company's CFO, Mark Harris, said, "We are excited to have EverBank join our facility and increasing our capacity to $120 million. Expanding our debt capacity and enhancing our treasury capabilities, at a lower cost of debt, is very beneficial for Hercules shareholders as it potentially increases net investment income and earnings per share. This facility expansion exemplifies our long-standing credit stature with some of the industry's highest-quality banking institutions and our success at increasing our credit capacity as we grow our business." The shares of the company lost 0.33% on Thursday.