Hercules Capital, Inc. has entered into a Twelfth Supplemental Indenture with U.S. Bank Trust Company, National Association, to issue $400,000,000 in aggregate principal amount of 6.700% Notes due 2029. The transaction closed on October 8, 2026, and was executed pursuant to a previously announced public offering.
The Notes carry an interest rate of 6.700% per year, with interest payments scheduled semiannually on April 8 and October 8 of each year, beginning April 8, 2027. The Notes are unsecured obligations of the company and rank senior in right of payment to all existing and future indebtedness that is expressly subordinated to them. However, they rank pari passu with all existing and future liabilities that are not subordinated, and structurally subordinated to indebtedness incurred by the company's subsidiaries.
Under the terms of the agreement, the Notes may be redeemed in whole or in part at the company's option at par, plus a make-whole premium if applicable. The Indenture includes covenants requiring the company to comply with specific provisions of the Investment Company Act of 1940 and to provide financial information to holders and the trustee if the company ceases to be subject to reporting requirements under the Securities Exchange Act of 1934.
The offering was managed by Goldman Sachs & Co. LLC and SMBC Nikko Securities America, Inc., acting as representatives of the underwriters. The company expects to use the net proceeds from the sale to repay outstanding unsecured and secured indebtedness, fund investments in accordance with its investment objectives, and for other general corporate purposes.
