Hercules shows strength with extra liquidity

 The northern California BDC could flex its muscles with an almost $70 million in unsecured notes.  

Hercules Capital has raised more money to pump into debt and equity investments, adding an additional $60 million to its unsecured notes due 2024.

The Palo Alto, Calif.-based business development company (BDC) announced on Monday (27 June) the company closed the deal, bringing in additional liquidity. The just-issued notes are tacked onto the existing $175.9 million in unsecured notes, which are priced at 6.25 percent. The $60 million offering that closed this week gives investors an option to buy up to another $9 million, which could add up to a total offering of $69 million.

In its announcement, Hercules did not name any specific investments and a spokesman could not be reached for comment.

In April, the BDC said it bolstered its Wells Fargo accordion credit facility with another $25 million commitment from EverBank, bring the total credit capacity to $120 million on top of the $300 million facility. The additional money carries an interest rate of L+3.25 percent and matures in April 2018. The EverBank commitment came on the heels of a $20 million increase on the facility that the AloStar Bank of Commerce made in March.

The firm also announced on Wednesday that it surpassed the $6 billion mark in total investment it has made since Hercules’ founding in December 2003. Hercules, which lends to venture capital-backed companies, currently has under $1.3 billion of assets under management. The investment shop said since its inception it has invested in more than 350 portfolio companies, with over 90 active portfolio companies.