Hercules Capital, Inc. (NYSE: HTGC) announced on March 5, 2025, that it priced an offering of $250.0 million aggregate principal amount of its 4.75% Convertible Unsecured Notes due 2028. The company also granted initial purchasers an option to purchase up to an additional $37.5 million principal amount.
The Convertible Notes are unsecured and bear interest at a rate of 4.75% per year, payable semiannually. The initial conversion rate is 46.5631 shares of common stock per $1,000 principal amount, equivalent to an initial conversion price of approximately $21.48 per share.
This conversion price represents approximately a 12.5% premium above the company's common stock closing price of $19.09 on March 5, 2025. The net proceeds from this offering are intended to fund investments in debt and equity securities and for general corporate purposes, with closing expected on March 10, 2025.
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