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    Hercules Capital (HTGC)

    Hercules Capital, Inc. (NYSE: HTGC) is a specialty finance company that provides senior secured loans to high-growth, innovative venture capital-backed companies in technology and life sciences industries. The company generates revenue through debt investments, equity investments, and asset management services. Hercules Capital focuses on structured debt financing, combining debt with equity components to support the growth and expansion of its portfolio companies.

    1. Debt Investments - Provides senior secured venture growth loans to high-growth companies, generating interest income (typically ranging from 7.5% to 14.5%) and fee income from commitment fees, facility fees, exit fees, and prepayment fees.
    2. Equity Investments - Earns income from dividends on direct equity investments and capital gains from the sale of warrants or other equity securities acquired from portfolio companies.
    3. Asset Management - Manages investments for external parties through its wholly owned subsidiary, Hercules Adviser LLC, earning management fees for its services.

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    1. Given that actual prepayments in Q1 were significantly below guidance—with only about $75 million versus a forecast of $100–$200 million—how do you plan to address the potential decline in fee income and what adjustments might you make in your refinancing strategy in future quarters? [Document 2][Document 4]

    2. With the core yield declining from 12.9% in Q4 to 12.6% in Q1 due largely to Fed rate cuts, what strategies does management have in place to mitigate further yield compression in a persistently volatile interest rate environment? [Document 2][Document 5]

    3. Your Q1 results showed GAAP leverage moving to just under 100% and an emphasis on high first lien exposure; what specific steps will you take to manage balance sheet risk if market conditions worsen? [Document 2][Document 5]

    4. In light of the shift toward technology companies—53% of Q1 commitments—and the volatility seen in the public biotech markets, how will management adjust its deal sourcing and underwriting standards in the life sciences segment to ensure portfolio resilience? [Document 2][Document 20]

    5. Amid escalating market uncertainty and a more selective venture capital environment, how do you balance the need to maintain strong liquidity (over $1 billion across the platform) with the desire to capitalize on attractive growth opportunities without overextending your leverage? [Document 2][Document 6]

    Program DetailsProgram 1
    Approval DateN/A
    End Date/DurationN/A
    Total additional amountN/A
    Remaining authorizationN/A
    DetailsNo stock repurchases were conducted during the years ended December 31, 2024, 2023, or 2022. The company may consider repurchases in the future based on market conditions and other factors.

    Recent press releases and 8-K filings for HTGC.

    Hercules Capital's Credit Rating Affirmed
    ·$HTGC
    Debt Issuance
    • Hercules Capital, Inc. (HTGC) has received an affirmed investment grade corporate and credit rating of BBB+ from Kroll Bond Rating Agency, Inc. (KBRA) as of August 19, 2025.
    • KBRA also issued a stable outlook for Hercules Capital.
    • The affirmation reflects Hercules' diversified investment portfolio focused on senior secured first lien venture debt, a solid 20+ year operating record, appropriate leverage metrics, and proven access to capital markets.
    Aug 19, 2025, 10:00 AM
    Hercules Capital Declares Q2 2025 Cash Distribution
    ·$HTGC
    Dividends
    • Hercules Capital declared a total cash distribution of $0.47 per share for the second quarter 2025, consisting of a $0.40 per share base distribution and a $0.07 per share supplemental distribution.
    • The record date for this distribution is August 12, 2025, and the payment date is August 19, 2025.
    • For distributions declared for the second quarter ended June 30, 2025, 80.13% was designated as Qualified Interest Income (QII) , and 100% was derived from the company's current earnings and profits.
    Jul 29, 2025, 10:00 AM
    Hercules Capital issues $350M 6% notes and upsizes credit facility
    ·$HTGC
    Debt Issuance
    • Hercules Capital, Inc. closed on $350 million aggregate principal of 6.000% Notes due 2030 under its Base Indenture and Ninth Supplemental Indenture on June 16, 2025.
    • The Company expects to use the net proceeds to repay outstanding secured indebtedness under its financing arrangements.
    • Hercules Funding IV LLC, a wholly-owned subsidiary, entered into a Fourth Amendment to its MUFG Loan and Security Agreement on June 10, 2025, increasing the facility from $400 million to $440 million, adjusting interest to Term SOFR plus 2.50–2.75%, revising unused fees, extending maturity to June 10, 2029, and raising the minimum tangible net worth covenant above $1.1 billion.
    Jun 16, 2025, 12:00 AM