Hercules increases credit facility to $75 million, reduces pricing

By Angela McDaniels

Tacoma, Wash., Aug. 19 – Hercules Technology Growth Capital, Inc. amended and restated its senior secured revolving credit facility with MUFG Union Bank, NA on Thursday, according to a company news release.

Among other things, MUFG Union Bank agreed to

• Increase the size of the credit facility to $75 million from $30 million and include a $20 million accordion feature;

• Reduce the interest rate to Libor plus 225 basis points with no floor from Libor plus 250 bps with a floor of 4%; and

• Extend the maturity date to Aug. 1, 2017.

Subject to some conditions, the amendment also removes a previous ceiling on the amount of certain unsecured debt that the company may incur, according to an 8-K filing with the Securities and Exchange Commission.

“With these improved terms we have increased the flexibility of our financing options as we work to grow our investment portfolio and our company over the next several quarters,” Hercules co-founder, chairman and chief executive officer Manuel Henriquez said in the news release.

Hercules is a Palo Alto, Calif.-based specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets.

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