Hercules Capital acquires subprime loan portfolio assets for approximately $ 125.0 million


PALO ALTO, Calif .– (COMMERCIAL THREAD) –Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the leading finance company specializing in innovative companies, venture capital growth, pre-IPOs and mergers and acquisitions backed by private equity firms. Senior Risk, today announced that it has entered into a definitive asset purchase agreement with Ares Capital Corporation (NASDAQ: ARCC) to acquire selected subprime loan assets for approximately $ 125.0 million. The all-cash transaction is expected to strengthen Hercules Capital’s position as the largest subprime loan business development company in the United States, with total assets of more than $ 1.5 billion.

Commenting on the transaction, Manuel A. Henriquez, Founder, President and CEO, said: “The opportunity to acquire this portfolio of high quality subprime loans strengthens our own growing subprime loan portfolio. This strategic acquisition, along with our continued focus on our “slow and steady” growth strategy, will help continue to grow our total assets and net investment income for the benefit of our shareholders. The portfolio acquisition demonstrates our continued efforts to expand our growing presence as a market leader in subprime loans while enhancing our overall investment loan portfolio through a disciplined growth strategy based on retention and expansion. of our highly differentiated, industry-leading subprime lending platform.

Mr. Henriquez concluded: “This transaction, along with our recently completed and expanded inaugural investment grade institutional bond offering of $ 150.0 million with a total principal amount of 4.625% of bonds maturing in 2022, once again demonstrates Hercules Capital’s continued efforts to reduce our overall financing costs. , while developing our loan portfolio and optimizing our balance sheet. With a very liquid balance sheet, moderate regulatory leverage and continued access to debt and equity markets through our “At-the-Market” (“ATM”) accretion programs, we plan to continue to solicit the market for additional acquisitions. opportunities that are accretive for the business, particularly at a time when we expect there to be further consolidation within the industry.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading and largest specialty finance company focused on providing senior secured growth loans to innovative, high growth companies backed by private equity. risk in a wide variety of technologies, life insurance science and industries to sustainable and renewable technologies. Since its inception (December 2003), Hercules has committed more than $ 6.9 billion to more than 380 companies and is the lender of choice for entrepreneurs and venture capitalists seeking financing in growth capital. Companies interested in learning more about funding opportunities should contact [email protected] or call 650.289.3060.

Hercules common stock is listed on the New York Stock Exchange under the symbol “HTGC”. In addition, Hercules has 6.25% notes outstanding due 2024 (NYSE: HTGX), 4.375% convertible notes due 2022 and 4.625% notes due 2022.

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, such as amended, and Section 21E (b) (2) (B) of the Securities Exchange Act of 1934, as amended, or of the Exchange Act, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to statements made in periodic reports that we file under the Exchange Act.

The information disclosed in this press release is made as of the date hereof and reflects Hercules’ most recent assessment of its historical financial performance. Actual financial results filed with the SEC may differ from those contained in this document due to delays between the date of this release and the confirmation of the 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 , risks, uncertainties, including uncertainties surrounding current market volatility and other factors that 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 these assumptions could prove to be incorrect and, therefore, forward-looking statements based on these assumptions could also be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and Hercules assumes no obligation to update any forward-looking statements for subsequent events.


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