Hercules' new $75 million revolver priced at Libor plus 350 bps

By Angela McDaniels

Tacoma, Wash., June 24 - Hercules Technology Growth Capital Inc. said that the interest rate on its new $75 million revolving credit facility is Libor plus 350 basis points with a floor of 5%.

The company announced the revolver in a press release on Thursday and announced further details in an 8-K filing with the Securities and Exchange Commission on Friday.

The revolver will mature on June 20, 2014, and it can be expanded to $300 million.

Hercules can prepay in full and terminate the revolver subject to a premium of 3% during the first year, 2% during the second year and 1% during the first six months of the third year. There is no premium during the last half of the third year.

Wells Fargo Capital Finance LLC is the lead bank.

The new revolver replaced the company's $300 million credit facility with Wells Fargo Capital Finance, under which Wells Fargo had committed $50 million. The company paid a closing fee of $1.1 million.

In addition, the company amended its $20 million revolver with Union Bank, NA to extend the borrowing termination date to Sept. 30 and the maturity date to Dec. 31, 2011.

Hercules Technology is a Palo Alto, Calif.-based specialty finance firm.

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