Hercules Capital Prices $400 Million Of 6.700% Notes Due 2029 At 99.379% Of Principal
The three-year notes carry a 6.933% yield to maturity, 195 basis points over a Treasury, and Baa2 and BBB- ratings.
Hercules Capital priced a $400,000,000 offering of 6.700% Notes due 2029 on Monday at 99.379% of principal, according to its pricing term sheet. The yield to maturity is 6.933%, a spread of 195 basis points (1.95 percentage points) over the benchmark Treasury.
What the term sheet says
The notes mature October 8, 2029, unless they are repurchased or redeemed earlier. Interest is paid April 8 and October 8, starting April 8, 2027.
The benchmark is the 4.375% Treasury due September 15, 2029, priced at 98-11 ¼ to yield 4.983%. The notes are rated Baa2 (Stable) by Moody's and BBB- (Stable) by Fitch.
The term sheet carries a standard caveat: a rating is not a recommendation to buy, sell or hold, and may be revised or withdrawn at any time. Denominations are $2,000 and integral multiples of $1,000 above that.
The term sheet does not state what the proceeds are for.
Redemption and change-of-control terms
Before September 8, 2029, one month before maturity, Hercules can redeem the notes in whole or in part. The price is the greater of 100% of principal or the present value of remaining payments, discounted at the Treasury rate plus 30 basis points, plus accrued interest.
From September 8, 2029, the company can redeem at 100% of principal plus accrued and unpaid interest.
Holders can require Hercules to repurchase the notes at 100% of principal plus accrued and unpaid interest after a change of control repurchase event.
Underwriters and settlement
Goldman Sachs, SMBC Nikko Securities America and MUFG Securities Americas are the joint book-running managers. Seven co-managers also underwrite the deal: Citizens JMP Securities, DZ Financial Markets, RBC Capital Markets, R. Seelaus, Synovus Securities, Wedbush Securities and Zions Direct.
Settlement is expected October 8, 2026, three business days after the trade date. The term sheet notes that secondary trades before then need an alternate settlement arrangement.
HTGC shares were unchanged at $16.69 in Monday after-hours trading, according to market data.
Settlement is set for October 8, 2026, and the first interest payment follows on April 8, 2027.
Sources
- Form FWP — Hercules Capital, Inc. (HTGC) — SEC EDGAR
- Hercules Capital Prices Upsized Public Offeri... — benzinga.com
