Beach rental equipments

HERCULES CAPITAL, INC. : conclusion of a material definitive agreement, creation of a direct financial obligation or obligation under an off-balance sheet arrangement of a registrant, financial statements and supporting documents (Form 8-K)

Article 1.01. The conclusion of an important definitive agreement.

Revolving credit agreement

At November 9, 2021, Hercules Capital, Inc., a Maryland company (the “Company”), has entered into a revolving credit agreement (the “Credit Facility”) with Sumitomo Mitsui Banking Company (“SMBC”), as administrative agent, and the lenders and issuing banks from time to time party to it. The credit facility provides for borrowings in we dollars and certain foreign currencies agreed for an initial total amount of up to $ 100.0 million. The credit facility has an accordion feature that increases total liabilities up to $ 150.0 million, under certain conditions. The credit facility provides for the issuance of letters of credit on behalf of the Company or its representative in we dollars and certain foreign currencies agreed for a total nominal amount not exceeding $ 15.0 million. The Company’s obligations under the Credit Facility may in the future be secured by certain of the Company’s subsidiaries and primarily secured by a first ranking security interest (subject to certain exceptions) only on certain specified property and assets of the Company and the subsidiary guarantors hereunder.

Availability under the credit facility will end on November 7, 2025, or the date of termination of the commitment, and loans outstanding under the credit facility will mature on November 9, 2026. The credit facility also requires mandatory early repayment of interest and principal upon certain events during the expiration period beginning on the date of termination of the commitment.

Borrowings under the credit facility are subject to compliance with a borrowing base and an aggregate portfolio balance. Interest under the Credit Facility for (i) loans for which the Company chooses the base rate option, (A) if the borrowing base is equal to or greater than the product of 1.60 and the ‘revolving credit exposure, are payable at an “alternative rate basis” (which is the greater of (x) zero and (y) the greater of (a) prime rate as published in the print edition of The Wall Street Journal, Money Rates Section, (b) the effective federal funds rate plus 0.5% and (c) the one-month Euro currency rate plus 1% per annum) plus 0.875% per annum and (B ) if the borrowing base is less than the product of 1.60 and the revolving credit risk, the alternative base rate increased by 1.00% per annum; (ii) the loans for which the Company chooses the Eurocurrency option, (A) if the borrowing base is equal to or greater than the product of 1.60 and the revolving credit exposure, is payable at a rate equal to the rate Euro currency plus 1.875% per year and (B) if the borrowing base is less than the product of 1.60 and the revolving credit exposure, is payable at a rate equal to the euro rate. currency increased by 2.00% per annum; and (iii) loans for which the Company chooses the RFR option, (A) if the borrowing base is equal to or greater than the product of 1.60 and the revolving credit exposure, is payable at a rate equal to RFR plus 1.9934% per annum and (B) if the borrowing base is less than the product of 1.60 and the revolving credit exposure, is payable at a rate equal to the RFR plus 2.1193% per year. The credit facility will be subject to a non-utilization fee of 0.375% per annum (based on the average utilization of the prior period) on the unused portion of the commitment under the credit facility during the period. renewal period. The Company will be required to pay letter of credit participation fees and fronting fees on the average daily amount of exposure of any lender with respect to any letter of credit issued under the credit facility.

In connection with the credit facility, the Company has made certain representations and guarantees and must comply with certain positive and negative covenants, including, but not limited to, (i) maintenance of shareholders’ equity minimum, measured at the end of each fiscal quarter, (ii) maintaining a minimum asset coverage ratio of 150% at all times and (iii) maintaining the Company’s status as a regulated investment company under the Internal Revenue Code of 1986, as amended, and as a business development company under the Investment Companies Act of 1940, as amended. The credit facility also allows the administrative agent to select an independent valuation firm to determine the valuations of certain portfolio investments for the purposes of the borrowing base. In connection with the credit facility, the Company also entered into new guarantee documents.

The Credit Facility also contains customary events of default with customary remedy and notice provisions, including, without limitation, non-payment, misrepresentation of representations and guarantees in material respect, breach from liability, cross default and cross acceleration to other debts and bankruptcy. In the event of default, SMBC, as administrative agent, may, and at the request of the required lenders, terminate the commitments and declare unpaid advances and all other obligations under the Credit Facility immediately due and payable.

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The above description is only a summary of the material provisions of the Credit Facility and is qualified in its entirety by reference to a copy of the Credit Facility, which is filed as Exhibit 10.1 of this current report on Form 8-K and incorporated by reference herein.

Article 2.03. Creation of a direct financial obligation or obligation under a

           Off-Balance Sheet Arrangement of a Registrant.


The information set out in section 1.01 of this current report on Form 8-K is incorporated by reference in this section 2.03.

Article 9.01. Financial statements and supporting documents.


(d) Exhibits



Exhibit
  No.       Description

10.1          Revolving Credit Agreement, dated as of November 9, 2021, among
            Hercules Capital, Inc., the lenders and issuing banks from time to
            time party thereto and Sumitomo Mitsui Banking Corporation, as
            administrative agent.

99.1          Press Release dated November 10, 2021

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