Monitor upcoming quarterly filings for leverage ratio changes and deployment of proceeds into new investments. The 6.700% coupon is a fixed cost that will pressure NII if deployment slows.
Price Chart
Executive Summary
Hercules Capital issued $400M of 6.700% senior unsecured notes due 2029 in an underwritten public offering that closed October 8, 2026. Net proceeds will be used to repay existing unsecured/secured debt, fund portfolio investments, and for general corporate purposes. The debt raise is a routine refinancing/capital management action for a BDC and does not signal distress.
Key Financial Metrics
Key Facts
- $400,000,000 aggregate principal amount of 6.700% Notes due 2029 issued
- Notes mature October 8, 2029; interest paid semi-annually at 6.700%
- Issue price 99.379% of par; underwriters purchased at 98.379%
- Joint book-runners: Goldman Sachs & Co. LLC and SMBC Nikko Securities America, Inc.
- Ratings: Baa2 (stable) by Moody's, BBB- (stable) by Fitch
- Proceeds to repay outstanding unsecured/secured debt, fund investments, and for general corporate purposes
- Notes are unsecured senior obligations ranking pari passu with existing unsecured debt
- Optional redemption at make-whole prior to September 8, 2029, then at par
- Change of control repurchase event triggers holder put at 100% of principal plus accrued interest
- Covenants include compliance with Investment Company Act Sections 18(a)(1)(A) and 18(a)(1)(B)
Financial Impact
$400M new senior unsecured debt issuance; net proceeds to repay existing debt and fund investments
Risk Factors
- Higher leverage from new debt could pressure asset coverage ratios under BDC regulatory requirements
- If investment deployment slows, the 6.700% coupon becomes a drag on net investment income
- Make-whole call provision limits near-term refinancing optionality
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-065459 |
| Exhibit: exhibit42-8xkxherculesocto.htm | 0001628280-26-065459 |
| Exhibit: exhibit51-8xkxherculesocto.htm | 0001628280-26-065459 |
| Document: htgc-20261005.htm | 0001628280-26-065459 |
| Document: 0001628280-26-065459-index-headers.html | 0001628280-26-065459 |
| Document: 0001628280-26-065459-index.html | 0001628280-26-065459 |
| Document: 0001628280-26-065459.txt | 0001628280-26-065459 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 18d ago | 8-K | $16.51 | awaiting T+60 | — | $16.43 (−0.48%) |
Jul 21, 2026 14w ago | 8-K | $16.13 $16.40 | ▲ +1.67% | ▼ −2.30% | $16.43 (+1.86%) |
Mar 26, 2026 30w ago | Insider Cluster | $14.06 $15.28 | ▲ +8.64% | ▼ −5.31% | $16.43 (+16.86%) |
Feb 27, 2026 34w ago | Insider Cluster | $14.60 $15.53 | ▲ +6.37% | ▼ −2.97% | $16.43 (+12.53%) |
Feb 25, 2026 34w ago | Insider Cluster | $15.11 $15.64 | ▲ +3.51% | ▼ −3.44% | $16.43 (+8.74%) |
Feb 25, 2026 34w ago | Insider Cluster | $15.11 $15.64 | ▲ +3.51% | ▼ −3.44% | $16.43 (+8.74%) |
Feb 25, 2026 34w ago | Insider Cluster | $15.11 $15.64 | ▲ +3.51% | ▼ −3.44% | $16.43 (+8.74%) |
Feb 23, 2026 35w ago | Insider Cluster | $14.62 $15.40 | ▲ +5.34% | ▼ −2.91% | $16.43 (+12.38%) |
Feb 23, 2026 35w ago | Insider Cluster | $14.62 $15.40 | ▲ +5.34% | ▼ −2.91% | $16.43 (+12.38%) |
Feb 23, 2026 35w ago | Insider Cluster | $14.62 $15.40 | ▲ +5.34% | ▼ −2.91% | $16.43 (+12.38%) |
US Market Status
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