Wunderlich Securities Adjusts Estimates For Capital Raise For Hercules Technology Growth Capital

In a report published Monday, Wunderlich Securities analyst Merrill Ross reiterated a Buy rating and $16.00 price target on

. In the report, Wunderlich Securities noted, "Buy-rated Hercules Technology Growth Capital (HTGC), which reached a milestone of over $5B in commitments over its 11-year history in March 2015, issued almost 7.6mm shares of common stock and raised over $101mm in equity in a transaction that closed on March 27, 2015. "The raise may have seemed perplexing, given that the company was awash in liquidity at year-end 2014, with over $227mm in cash and $391mm of available liquidity in total. The raise was accretive to NAV, but makes it all the more challenging for NII to cover distributions in 1H15. The dividend is not at risk because HTGC has spillover reserves, but our target of $16 reflects our estimate that DNOI is unlikely to cover distributions until 4Q15." Hercules Technology Growth Capital closed on Friday at $13.65.