By Rebecca Melvin
New York, April 12 - Hercules Technology Growth Capital Inc. priced $75 million of five-year convertible senior notes late Monday at par to yield 6% with an initial conversion premium of 15%, according to a news release.
The Rule 144A offering priced at the cheap end of coupon talk, which was 5.5% to 6%, and at the talked premium point.
RBC Capital Markets LLC was the bookrunner of the deal, for which there is a $15 million greenshoe.
The notes are non-callable and mature April 15, 2016.
There is contingent conversion subject to the underlying share price being 130% of conversion, and there is dividend and takeover protection.
Proceeds will be used to fund investments in debt and equity securities in accordance with investment objectives and for general corporate purposes.
Palo Alto, Calif.-based Hercules Technology is a specialty finance company focused on technology and life science companies.
| Issuer: | Hercules Technology Growth Capital Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $75 million
|
| Greenshoe: | $15 million
|
| Maturity: | April 15, 2016
|
| Bookrunner: | RBC Capital Markets LLC
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 15%
|
| Conversion price: | $11.89
|
| Conversion ratio: | 84.0972
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Contingent conversion: | Yes, at 130%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 5.5%-6%, up 15%
|
| Pricing date: | April 11
|
| Settlement date: | April 15
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: HTGC
|
| Stock reference price: | $10.34 at close April 11
|
| Market capitalization: | $722.4 million
|
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