By Devika Patel
Knoxville, Tenn., Jan. 18 – Hercules Capital, Inc. offered further details, including the price and yield, about an upsized $350 million of 3.375% senior notes due Jan. 20, 2027 (Baa3//Kroll: BBB+) that priced on Friday at 200 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.282 to yield 3.533%.
The notes were guided to yield 200 bps over Treasuries, Prospect News reported earlier. The deal size was initially planned at $300 million.
Goldman Sachs & Co. LLC billed and delivered, and RBC Capital Markets LLC and SMBC Nikko Securities America Inc. were also bookrunners.
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.
| Issuer: | Hercules Capital, Inc.
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| Amount: | $350 million
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| Issue: | Senior notes
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| Maturity: | Jan. 20, 2027
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| Bookrunners: | Goldman Sachs & Co. LLC, RBC Capital Markets LLC and SMBC Nikko Securities America Inc.
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| Co-managers: | HSBC Securities (USA) Inc. and Zions Direct Inc.
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| Coupon: | 3.375%
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| Price: | 99.282
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| Yield: | 3.533%
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| Spread: | 200 bps over Treasuries
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| Call: | Make-whole call at Treasuries plus 30 bps until Dec. 20, 2026, then a par call
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| Pricing date: | Jan. 14
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| Settlement date: | Jan. 20
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| Ratings: | Moody’s: Baa3
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| Kroll: BBB+
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| Distribution: | SEC registered
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| Guidance: | Treasuries plus 200 bps, $300 million issue size
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| Cusip: | 427096AJ1
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