Hercules Technology Growth Capital, Inc.
) modified and reiterated its revolving senior secured credit
facility with MUFG Union Bank, N.A. - a division of Mitsubishi UFJ
Financial Group, Inc. (
Per the amendment and restatement on Aug 14, Hercules enhanced the
credit facility size to $75 million from $30 million. The company
may further augment the facility to an aggregate principal amount
of $95 million through additional lenders according to an included
However, the exercising of this feature is subject to the approval
of Union Bank and other customary conditions and there is no
guarantee that the additional lenders will join the credit facility
to increase available borrowings.
Further, the yearly interest rate on LIBOR borrowings made by
Hercules under the credit facility has been trimmed down to LIBOR
plus 2.25% from LIBOR plus 2.50% and the floor of 4% has been
removed. The ceiling on a specific unsecured debt of the company
has also been removed.
Moreover, the maturity date of the credit facility has been
extended to Aug 1, 2017.
Hercules looks forward to a strong investment portfolio, driven by
the flexibility of the new terms.
Currently, Hercules carries a Zacks Rank #3 (Hold). Some
better-ranked finance stocks include Farmers Capital Bank
) and AllianceBernstein Holding L.P. (
). Both these stocks hold a Zacks Rank #1 (Strong Buy).
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HERCULES TECH (HTGC): Free Stock Analysis
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