HTGC Prices ﹩400 Million of 6.70% Notes
View the HTGC Dividend Stock Profile
Hercules Capital announced on October 5, 2026, that it priced an upsized offering of ﹩400 million of 6.70% unsecured notes due October 8, 2029.
The notes are expected to close on October 8, subject to customary conditions. Interest is payable twice a year. Hercules said it may use the net proceeds to repay secured or unsecured debt, fund investments that fit its strategy, and support other general corporate purposes.
Why it matters
The notes would carry about ﹩26.8 million of annual coupon expense while the full principal remains outstanding, before issuance costs. That expense is not an earnings measure. The eventual effect on earnings will depend on which liabilities Hercules repays, the cost of those liabilities, and the income earned on any new investments funded with the proceeds.
Unsecured term debt can preserve collateral flexibility and broaden funding capacity. It can also raise fixed interest expense if proceeds are not promptly used to retire debt or originate investments at sufficient spreads.
Shareholders should watch the completed offering, the company’s actual use of proceeds, net leverage, and distributable net investment income in subsequent results. The announced uses are intentions, not completed transactions.
Sources
This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.