Hercules Capital Renews and Increases Its Credit Facility with MUFG Bank, Ltd. to $440.0 Million
Credit Facility Renewal: Hercules Capital, Inc. has upsized and renewed its $400 million credit facility with MUFG Bank to a total of $440 million, which includes an expandable accordion feature up to $600 million, maturing in June 2029.
Company Overview: Hercules Capital is a leading specialty finance provider focused on senior secured venture growth loans for high-growth companies, having committed over $22 billion to more than 680 companies since its inception in 2003.
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Hercules Capital Reports Record Q4 2025 Earnings Performance
- Record Performance: Hercules Capital achieved total investment income of $137.4 million and net investment income of $87 million in Q4 2025, reflecting strong profitability amidst market volatility and a solid operational foundation.
- Portfolio Expansion: The company set a new record with nearly $4 billion in originations for 2025, while assets under management surpassed $5.7 billion, marking over a 20% year-over-year increase, indicating enhanced competitiveness in the capital markets.
- Stable Dividend Policy: Despite market fluctuations, Hercules Capital maintained a quarterly base distribution of $0.40 per share with a 120% coverage ratio, demonstrating a commitment to shareholder returns and financial stability.
- Optimistic Future Outlook: Management anticipates a robust new business environment in 2026, particularly in strategic M&A and capital markets activities, reflecting ongoing confidence and investment in supporting the innovation economy.
Hercules Capital Closes $300 Million Note Offering
- Bond Offering Size: Hercules Capital successfully closed a $300 million offering of 5.350% unsecured notes due February 10, 2029, with an annual interest rate of 5.350% payable semiannually, demonstrating the company's robust financing capabilities in the capital markets.
- Clear Use of Proceeds: The net proceeds from this offering are earmarked for funding investments in line with its investment objectives, repaying outstanding secured indebtedness, and other general corporate purposes, indicating a strategic clarity in capital allocation.
- Strong Underwriter Lineup: Goldman Sachs, SMBC Nikko Securities, and MUFG Securities acted as joint book-running managers for this offering, reflecting market confidence and support for Hercules Capital, thereby enhancing its credibility among investors.
- Company Background: Since its inception in 2003, Hercules Capital has committed over $25 billion to more than 700 companies, establishing itself as the lender of choice for high-growth, innovative venture capital-backed firms, further solidifying its leadership position in the financial services industry.
Hercules Capital Announces New Cash Distribution
- New Cash Distribution Plan: Hercules Capital has announced a new supplemental cash distribution of $0.07 per share starting in Q4 2025, to be paid equally over four quarters, demonstrating the company's ongoing commitment to shareholder returns.
- Regular Distribution Increase: This supplemental distribution will be issued alongside the regular quarterly cash distribution of $0.40 per share, indicating the company's efforts to enhance shareholder value while maintaining stable earnings.
- Tax Attribute Transparency: Of the distributions declared as of December 31, 2025, 100% were derived from the company's current and accumulated earnings, ensuring shareholders have a clear understanding of the tax attributes of their distributions, which bolsters investor confidence.
- Compliance and Qualified Interest Income: Under Internal Revenue Code Section 871(k), 78.54% of Hercules' distributions are designated as Qualified Interest Income, potentially exempt from U.S. withholding tax for foreign accounts, further attracting international investors.
Hercules Capital announces unprecedented $2.87B in originations for 2025, ensuring robust dividend support.
Management Performance: Hercules Capital reported record fundings of $2.87 billion for the first three quarters of 2025, with a total investment income of $138.1 million and net investment income of $88.6 million in Q3, reflecting strong demand and operational performance.
Outlook and Guidance: Management anticipates continued strong origination activity through year-end, with expectations for lower prepayments in Q4 and a core yield range of 12% to 12.5%, while maintaining robust liquidity and disciplined underwriting.
Credit Quality and Risks: The company remains confident in its credit portfolio, noting no significant deterioration despite market volatility and a government shutdown, although caution was expressed regarding certain segments of the lending market.
Analyst Sentiment: Analysts showed a positive outlook on Hercules Capital's sustainability of dividends and credit quality, with ongoing interest in the company's strategic positioning and risk management as they approach the end of 2025.
Hercules Capital Sets Date for Third Quarter 2025 Financial Results Release and Conference Call
Conference Call Announcement: Hercules Capital, Inc. has scheduled its third quarter 2025 financial results conference call for October 30, 2025, at 2:00 p.m. PT, with results to be released after market close that day.
Company Overview: Hercules Capital is a leading specialty finance provider focused on senior secured venture growth loans for innovative, venture capital-backed companies, having committed over $23 billion to more than 690 companies since its inception in 2003.
Hercules Capital outlines expectation for record 2025 fundings while maintaining disciplined capital deployment
Management Performance: Hercules Capital reported record fundings and investment income in Q2 2025, with over $1 billion in new originations and a net debt portfolio growth of $192.1 million, reflecting strong operational performance and a robust liquidity position.
Outlook and Market Sentiment: Despite anticipated seasonal slowdowns in Q3, management remains optimistic about achieving record commitments and fundings by year-end, while navigating competitive pressures from nonbank lenders and maintaining a selective approach to new investments.
Hercules Capital Reports Record Q4 2025 Earnings Performance
- Record Performance: Hercules Capital achieved total investment income of $137.4 million and net investment income of $87 million in Q4 2025, reflecting strong profitability amidst market volatility and a solid operational foundation.
- Portfolio Expansion: The company set a new record with nearly $4 billion in originations for 2025, while assets under management surpassed $5.7 billion, marking over a 20% year-over-year increase, indicating enhanced competitiveness in the capital markets.
- Stable Dividend Policy: Despite market fluctuations, Hercules Capital maintained a quarterly base distribution of $0.40 per share with a 120% coverage ratio, demonstrating a commitment to shareholder returns and financial stability.
- Optimistic Future Outlook: Management anticipates a robust new business environment in 2026, particularly in strategic M&A and capital markets activities, reflecting ongoing confidence and investment in supporting the innovation economy.
Hercules Capital Closes $300 Million Note Offering
- Bond Offering Size: Hercules Capital successfully closed a $300 million offering of 5.350% unsecured notes due February 10, 2029, with an annual interest rate of 5.350% payable semiannually, demonstrating the company's robust financing capabilities in the capital markets.
- Clear Use of Proceeds: The net proceeds from this offering are earmarked for funding investments in line with its investment objectives, repaying outstanding secured indebtedness, and other general corporate purposes, indicating a strategic clarity in capital allocation.
- Strong Underwriter Lineup: Goldman Sachs, SMBC Nikko Securities, and MUFG Securities acted as joint book-running managers for this offering, reflecting market confidence and support for Hercules Capital, thereby enhancing its credibility among investors.
- Company Background: Since its inception in 2003, Hercules Capital has committed over $25 billion to more than 700 companies, establishing itself as the lender of choice for high-growth, innovative venture capital-backed firms, further solidifying its leadership position in the financial services industry.
Hercules Capital Announces New Cash Distribution
- New Cash Distribution Plan: Hercules Capital has announced a new supplemental cash distribution of $0.07 per share starting in Q4 2025, to be paid equally over four quarters, demonstrating the company's ongoing commitment to shareholder returns.
- Regular Distribution Increase: This supplemental distribution will be issued alongside the regular quarterly cash distribution of $0.40 per share, indicating the company's efforts to enhance shareholder value while maintaining stable earnings.
- Tax Attribute Transparency: Of the distributions declared as of December 31, 2025, 100% were derived from the company's current and accumulated earnings, ensuring shareholders have a clear understanding of the tax attributes of their distributions, which bolsters investor confidence.
- Compliance and Qualified Interest Income: Under Internal Revenue Code Section 871(k), 78.54% of Hercules' distributions are designated as Qualified Interest Income, potentially exempt from U.S. withholding tax for foreign accounts, further attracting international investors.
Hercules Capital announces unprecedented $2.87B in originations for 2025, ensuring robust dividend support.
Management Performance: Hercules Capital reported record fundings of $2.87 billion for the first three quarters of 2025, with a total investment income of $138.1 million and net investment income of $88.6 million in Q3, reflecting strong demand and operational performance.
Outlook and Guidance: Management anticipates continued strong origination activity through year-end, with expectations for lower prepayments in Q4 and a core yield range of 12% to 12.5%, while maintaining robust liquidity and disciplined underwriting.
Credit Quality and Risks: The company remains confident in its credit portfolio, noting no significant deterioration despite market volatility and a government shutdown, although caution was expressed regarding certain segments of the lending market.
Analyst Sentiment: Analysts showed a positive outlook on Hercules Capital's sustainability of dividends and credit quality, with ongoing interest in the company's strategic positioning and risk management as they approach the end of 2025.
Hercules Capital Sets Date for Third Quarter 2025 Financial Results Release and Conference Call
Conference Call Announcement: Hercules Capital, Inc. has scheduled its third quarter 2025 financial results conference call for October 30, 2025, at 2:00 p.m. PT, with results to be released after market close that day.
Company Overview: Hercules Capital is a leading specialty finance provider focused on senior secured venture growth loans for innovative, venture capital-backed companies, having committed over $23 billion to more than 690 companies since its inception in 2003.
Hercules Capital outlines expectation for record 2025 fundings while maintaining disciplined capital deployment
Management Performance: Hercules Capital reported record fundings and investment income in Q2 2025, with over $1 billion in new originations and a net debt portfolio growth of $192.1 million, reflecting strong operational performance and a robust liquidity position.
Outlook and Market Sentiment: Despite anticipated seasonal slowdowns in Q3, management remains optimistic about achieving record commitments and fundings by year-end, while navigating competitive pressures from nonbank lenders and maintaining a selective approach to new investments.
