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Hercules Capital Says Rate Increase Will Add $3.1 Mln in Investment Income Per Year


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Hercules Capital ( HTGC ), a specialty finance company, said it anticipates a 25 basis point increase in the prime rate will contribute approximately $3.1 million, or $0.04 per share, of net investment income per year.

The company said that as of March 31, 96.5% of its $1.4 billion debt investment portfolio was primarily priced at prime or LIBOR-based floating interest rates, while 100% of its outstanding debt obligations have a fixed rate of interest.

Hercules also said the expected increase to the prime rate will take effect in mid-June, and is not expected to have any material impact to its net investment income in Q2. The expected benefit from the June 13 rate increase is expected to materialize beginning in Q3.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , ETFs
Referenced Symbols: HTGC



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