Market Overview

Hercules to Seek Stockholder Approval to Reduce Its Asset Coverage Requirement to 150%

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Hercules
Capital, Inc.
(NYSE:HTGC) ("Hercules" or the "Company"), along with
its Board of Directors (the "Board"), has conducted an extensive review
of the Small Business Credit Availability Act ("SBCAA"), which passed
into law on March 23, 2018. The SBCAA permits Hercules to choose to
reduce its asset coverage requirement, subject to either receipt of
approval from the Board, which would defer any change for a period of
one year, or approval by its stockholders, which would immediately
reduce its asset coverage requirements to 150%.

Following a thorough review of the SBCAA and completing a stockholder
and bondholder outreach initiative over the past several months, the
Company and its Board have unanimously determined that the best course
of action is to seek stockholder approval to accelerate the application
of the reduced asset coverage requirements to the Company at a special
stockholder meeting ("Special Meeting") to be held on December 6, 2018.
In connection with the Special Meeting, the Company plans to file with
the SEC and mail to its stockholders a proxy statement that will provide
additional detail regarding the Company's rationale for adopting the
reduced asset coverage ratio requirements.

In addition, the Board, including a "required majority" (as such term is
defined in Section 57(o) of the 1940 Act) of the Board, approved the
application of the modified asset coverage requirements to be effective
one year after such Board approval and as a result, the Company's asset
coverage requirements for senior securities will be changed from 200% to
150%, effective September 4, 2019. However, if the stockholder proposal
is passed at the Special Meeting, the Company would be subject to the
modified asset coverage requirements the day after the Special Meeting.

"Based on careful consideration and analysis, we believe that our
stockholders and bondholders would benefit from the reduction of our
asset coverage requirement," stated Manuel A. Henriquez, chairman and
CEO of Hercules. "With stockholder approval of this motion, reducing our
asset coverage ratio would allow us to diligently expand the size of our
total assets, thereby giving us greater flexibility to the structural
limitations surrounding ineligible or ‘bad assets,' and an increased
ability to build a well-diversified debt investment portfolio. We
believe this added investment flexibility, when combined with our
stockholder-aligned, internally managed structure, has the potential to
increase our key performance ratios, which already remain among the
highest in the industry."

Henriquez continued, "It is important to note that we expect to continue
to be prudent in our utilization of leverage and intend to have a target
leverage ratio range of 0.95x to 1.25x as compared to our current target
leverage ratio range of 0.75x to 0.95x. Furthermore, our investment
criteria will not change, and we will remain true to our core venture
lending investment strategy which focuses on senior secured, short term
and rapidly amortizing loans. Finally, due to the amortizing nature of
our debt investment portfolio, we do not anticipate a meaningful
increase in our total assets over the next two or three years, but
rather a gradual increase over the long-term."

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE:HTGC) ("Hercules") is the leading and
largest specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture capital-backed
companies in a broad variety of technology, life sciences and
sustainable and renewable technology industries. Since inception
(December 2003), Hercules has committed more than $8.0 billion to over
430 companies and is the lender of choice for entrepreneurs and venture
capital firms seeking growth capital financing. Companies interested in
learning more about financing opportunities should contact info@htgc.com,
or call 650.289.3060.

Hercules' common stock trades on the New York Stock Exchange (NYSE)
under the ticker symbol "HTGC." In addition, Hercules has four
outstanding bond issuances of 6.25% Notes due 2024 (NYSE:HTGX), 4.375%
Convertible Notes due 2022, 4.625% Notes due October 2022 and 5.25%
Notes due 2025 (NYSE:HCXZ).

Forward-Looking Statements

This press release may contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. You
should understand that under Section 27A(b)(2)(B) of the Securities Act
of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange
Act of 1934, as amended, or the Exchange Act, the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995 do
not apply to forward-looking statements made in periodic reports we file
under the Exchange Act.

The information disclosed in this press release is made as of the date
hereof and reflects Hercules most current assessment of its historical
financial performance. Actual financial results filed with the SEC may
differ from those contained herein due to timing delays between the date
of this release and confirmation of final audit results. These
forward-looking statements are not guarantees of future performance and
are subject to uncertainties and other factors that could cause actual
results to differ materially from those expressed in the forward-looking
statements including, without limitation, the risks, uncertainties,
including the uncertainties surrounding the current market volatility,
and other factors the Company identifies from time to time in its
filings with the SEC. Although Hercules believes that the assumptions on
which these forward-looking statements are based are reasonable, any of
those assumptions could prove to be inaccurate and, as a result, the
forward-looking statements based on those assumptions also could be
incorrect. You should not place undue reliance on these forward-looking
statements. The forward-looking statements contained in this release are
made as of the date hereof, and Hercules assumes no obligation to update
the forward-looking statements for subsequent events.

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