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Hercules Technology Growth Capital Provides Portfolio Update for First Quarter 2011

^{Published on 2011-03-01 19:40:40 - Market Wire}
 

PALO ALTO, Calif.--([ BUSINESS WIRE ])--Hercules Technology Growth Capital, Inc. (NASDAQ:HTGC), the leading specialty finance company devoted to addressing the capital needs of venture capital and private equity-backed technology-related companies, including clean technology, life sciences and lower middle market companies at all stages of development, today provided a portfolio update for the first quarter 2011.

As of March 1, 2011:

Originations

Hercules closed loan commitments totaling approximately $42.0 million to new portfolio companies in the cleantech, life sciences and lower middle market sectors.

BIND Biosciences, Inc.

Bind Biosciences ([ www.bindbio.com ]) received a commitment from Hercules for $10.0 million. Based in Cambridge, MA, Bind Biosciences is a biopharmaceutical company leveraging its proprietary Medicinal Nanoengineering platform to produce best-in-class drugs to provide significant improvement in the treatment of patients with serious diseases.

EcoMotors

EcoMotors ([ www.ecomotors.com ]) received a commitment from Hercules for $10.0 million. Based in Allen Park, MI, EcoMotors is a developer of next generation engine designs with a focus on fuel efficiency and low emissions. EcoMotors is commercializing its unique OPOCa" engine for use in cars, light trucks, and auxiliary power units. Anywhere conventional gas or diesel power is currently utilized, OPOCa" represents a better propulsion solution.

ScriptSave

ScriptSave ([ www.scriptsave.com ]) received a commitment from Hercules for $22.0 million. Based in Tucson, AZ, ScriptSave is a leading pharmacy benefit administrator of a specific array of prescription drug benefit solutions for retail pharmacies, health insurance companies, pharmacy benefit managers, and individual consumers.

Liquidity Event

As previously disclosed, on January 18, 2011, Infologix completed the sale of all of its shares to Stanley Works Black & Decker, Inc. (NYSE: SWK) in a transaction valued at approximately $61.2 million prior to transaction fees, closing costs, and working capital adjustments. Hercules expects to realize a net gain of approximately $8.0-$8.5 million in the first quarter of 2011.

Portfolio Milestones

On February 3, 2011, portfolio company Pacira, an emerging specialty pharmaceutical company focused on the development, commercialization and manufacture of novel pharmaceutical products, priced its initial public offering (aIPOa) on Nasdaq-GM under the symbol (aPCRXa).

Current Signed Term Sheets: Future Portfolio Growth Potential

As of February 24, Hercules has approximately $128.0 million in non-binding signed term sheets outstanding, which generally convert to contractual closed commitments within approximately 45 to 60 days of signing. Non-binding term sheets are subject to completion of Hercules' due diligence, investment committee approval, legal review, and negotiation of definitive documentation. Not all signed non-binding term sheets are expected to close and do not necessarily represent any future cash requirements.

Unfunded Commitments:Future Portfolio Growth Potential

As of February 24, Hercules also has approximately $110.0 million in unfunded commitments.

Portfolio companies typically draw down approximately 75% of their commitments over a three to six month timeframe, so new commitments do not equate to assets outstanding at the time of the commitment. Unfunded commitments may expire without being drawn and do not necessarily represent future cash requirements or future earning assets for Hercules.

About Hercules Technology Growth Capital, Inc.:

Hercules Technology Growth Capital, Inc. is a NASDAQ traded specialty finance firm providing customized loans to public and private technology-related companies, including clean technology, life science and lower middle market companies at all stages of development. Since its founding in 2003, Hercules has committed over $2.1 billion in flexible financing solutions to over 155 companies, enabling these companies to maximize their equity by leveraging these assets. Herculesa™ strength comes from its deep understanding of credit and the industries it serves, allowing it to partner with venture capital and private equity companies for a less dilutive source of growth capital helping companies to bridge through their critical stages of growth. Hercules offers a full suite of growth capital products at all levels of the capital structure, ranging from $500,000 to $30 million, lines of credit to term loans. The company is headquartered in Palo Alto, California and has additional offices in Massachusetts and Colorado. Providing capital to publicly-traded or privately-held companies backed by leading venture capital and private equity firms involves a high degree of credit risk and may result in potential losses of capital. For more information, please visit [ www.htgc.com ].

Companies interested in learning more about financing opportunities should contact [ info@htgc.com ], or call 650.289.3060.

Forward-Looking Statements:

The statements contained in this release that are not purely historical are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements including, without limitation, the risks, uncertainties, including the uncertainties surrounding the current market, and other factors we identify from time to time in our filings with the Securities and Exchange Commission. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate and, as a result, the forward-looking statements based on those assumptions also could be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements contained in this release are made as of the date hereof, and Hercules assumes no obligation to update the forward-looking statements for subsequent events.