Hercules Capital offers $300 million five-year senior notes at Treasuries plus 200 bps

By Devika Patel

Knoxville, Tenn., Jan. 14 – Hercules Capital, Inc. plans to price $300 million fixed-rate senior notes due Jan. 20, 2027 (Baa3//Kroll: BBB+) on Friday guided to yield 200 basis points over Treasuries, according to 497AD and 424B2 fillings with the Securities and Exchange Commission.

The notes (Cusip: 427096AJ1) feature a make-whole call until one month prior to maturity and then a par call. There is a change-of-control put at par.

Goldman Sachs & Co. LLC will bill and deliver and RBC Capital Markets LLC and SMBC Nikko Securities America Inc. are also bookrunners. HSBC Securities (USA) Inc. and Zions Direct Inc. are the co-managers.

Settlement is expected on Jan. 20.

Proceeds will be used to repay the company’s approximately $230 million of 4.375% convertible notes due 2022, for investments in debt and equity securities and for other general corporate purposes.

As previously reported, the company held fixed income investor calls on Tuesday for the offering.

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

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