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Section 1: 10-Q (10-Q)

htgc-10q_20200331.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended March 31, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-00702

 

HERCULES CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Maryland

 

74-3113410

(State or Jurisdiction of

Incorporation or Organization)

 

(IRS Employer

Identification Number)

 

400 Hamilton Ave., Suite 310

Palo Alto, California

(Address of Principal Executive Offices)

 

94301

(Zip Code)

 

(650) 289-3060

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, par value $0.001 per share

HTGC

New York Stock Exchange

5.25% Notes due 2025

HCXZ

New York Stock Exchange

6.25% Notes due 2033

HCXY

New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No 

On April 29, 2020, there were 110,615,986 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 


 

HERCULES CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

  

3

 

Item 1.

 

 

Consolidated Financial Statements

  

3

 

 

 

Consolidated Statements of Assets and Liabilities as of March 31, 2020 and December 31, 2019 (unaudited)

  

3

 

 

 

Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 (unaudited)

  

5

 

 

 

Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2020 and 2019 (unaudited)

  

6

 

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of March 31, 2020 (unaudited)

  

9

 

 

 

Consolidated Schedule of Investments as of December 31, 2019 (unaudited)

  

20

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

30

Item 2.

 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

64

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

80

Item 4.

 

 

Controls and Procedures

  

81

 

PART II. OTHER INFORMATION

  

82

 

Item 1.

 

Legal Proceedings

  

82

Item 1A.

 

 

Risk Factors

 

82

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

84

Item 3.

 

Defaults Upon Senior Securities

  

84

Item 4.

 

 

Mine Safety Disclosures

  

84

Item 5.

 

 

Other Information

  

84

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

85

 

SIGNATURES

  

88

 

 

 

 

2


 

PART I: FINANCIAL INFORMATION

In this Quarterly Report, the “Company,” “Hercules,” “we,” “us” and “our” refer to Hercules Capital, Inc. and its wholly owned subsidiaries and its affiliated securitization trusts, unless the context otherwise requires.

 

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(unaudited)

(in thousands, except per share data)

 

 

 

March 31, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $2,312,460 and $2,248,524, respectively)

 

$

2,238,479

 

 

$

2,232,972

 

Control investments (cost of $65,213 and $65,333, respectively)

 

 

51,775

 

 

 

59,746

 

Affiliate investments (cost of $88,584 and $88,175, respectively)

 

 

12,226

 

 

 

21,808

 

Total investments in securities, at value (cost of $2,466,256 and $2,402,032, respectively)

 

 

2,302,480

 

 

 

2,314,526

 

Cash and cash equivalents

 

 

34,282

 

 

 

64,393

 

Restricted cash

 

 

22,060

 

 

 

50,603

 

Interest receivable

 

 

19,137

 

 

 

20,207

 

Right of use asset (2)

 

 

11,078

 

 

 

11,659

 

Other assets

 

 

7,714

 

 

 

580

 

Total assets

 

$

2,396,751

 

 

$

2,461,968

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

22,450

 

 

$

30,306

 

Operating lease liability (2)

 

 

11,144

 

 

 

11,538

 

SBA Debentures, net (principal of $110,250 and $149,000, respectively) (1)

 

 

109,725

 

 

 

148,165

 

2022 Notes, net (principal of $150,000 and $150,000, respectively) (1)

 

 

148,645

 

 

 

148,514

 

July 2024 Notes, net (principal of $105,000 and $105,000, respectively) (1)

 

 

103,721

 

 

 

103,685

 

February 2025 Notes, net (principal of $50,000 and $0, respectively) (1)

 

 

49,442

 

 

 

 

2025 Notes, net (principal of $75,000 and $75,000, respectively) (1)

 

 

73,066

 

 

 

72,970

 

2033 Notes, net (principal of $40,000 and $40,000, respectively) (1)

 

 

38,528

 

 

 

38,501

 

2027 Asset-Backed Notes, net (principal of $200,000 and $200,000, respectively) (1)

 

 

197,377

 

 

 

197,312

 

2028 Asset-Backed Notes, net (principal of $250,000 and $250,000, respectively) (1)

 

 

247,444

 

 

 

247,395

 

2022 Convertible Notes, net (principal of $230,000 and $230,000, respectively) (1)

 

 

227,004

 

 

 

226,614

 

Credit Facilities

 

 

71,125

 

 

 

103,919

 

Total liabilities

 

$

1,299,671

 

 

$

1,328,919

 

 

 

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

 

 

Common stock, par value

 

 

111

 

 

 

108

 

Capital in excess of par value

 

 

1,182,080

 

 

 

1,145,106

 

Total distributable earnings (loss)

 

 

(85,111

)

 

 

(12,165

)

Total net assets

 

$

1,097,080

 

 

$

1,133,049

 

Total liabilities and net assets

 

$

2,396,751

 

 

$

2,461,968

 

 

 

 

 

 

 

 

 

 

Shares of common stock outstanding ($0.001 par value and 200,000,000 authorized)

 

 

110,601

 

 

 

107,364

 

Net asset value per share

 

$

9.92

 

 

$

10.55

 

 

(1)

The Company’s SBA debentures, 2022 Notes, July 2024 Notes, February 2025 Notes, 2025 Notes, 2033 Notes, 2027 Asset-Backed Notes, 2028 Asset-Backed Notes, and 2022 Convertible Notes, as each term is defined herein, are presented net of the associated debt issuance costs for each instrument. See “Note 4 – Borrowings”.

(2)

See “Note 2 – Summary of Significant Accounting Policies” for a description of Right of use asset and Operating lease liability.

See notes to consolidated financial statements

3


 

The following table presents the assets and liabilities of our consolidated securitization trusts for the 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes (see Note 4), which are variable interest entities, or VIEs. The assets of our securitization VIEs can only be used to settle obligations of our consolidated securitization VIEs, these liabilities are only the obligations of our consolidated securitization VIEs, and the creditors (or beneficial interest holders) do not have recourse to our general credit. These assets and liabilities are included in the Consolidated Statements of Assets and Liabilities above.

 

(Dollars in thousands)

 

March 31, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Restricted Cash

 

$

22,060

 

 

$

50,603

 

2027 Asset-Backed Notes, investments in securities, at value (cost of $297,682 and $283,891, respectively)

 

 

295,981

 

 

 

283,658

 

2028 Asset-Backed Notes, investments in securities, at value (cost of $365,755 and $347,295, respectively)

 

 

363,561

 

 

 

347,929

 

Total assets

 

$

681,602

 

 

$

682,190

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

2027 Asset-Backed Notes, net (principal of $200,000 and $200,000, respectively) (1)

 

$

197,377

 

 

$

197,312

 

2028 Asset-Backed Notes, net (principal of $250,000 and $250,000, respectively) (1)

 

 

247,444

 

 

 

247,395

 

Total liabilities

 

$

444,821

 

 

$

444,707

 

 

(1)

The Company’s 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes are presented net of the associated debt issuance costs. See “Note 4 – Borrowings”.

See notes to consolidated financial statements

4


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Investment income:

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

$

65,338

 

 

$

53,941

 

Control investments

 

 

646

 

 

 

1,024

 

Affiliate investments

 

 

220

 

 

 

508

 

Total interest income

 

 

66,204

 

 

 

55,473

 

Fee income

 

 

 

 

 

 

 

 

Commitment, facility and loan fee income

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

4,196

 

 

 

2,450

 

Control investments

 

 

5

 

 

 

4

 

Affiliate investments

 

 

 

 

 

88

 

Total commitment, facility and loan fee income

 

 

4,201

 

 

 

2,542

 

One-time fee income

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

3,214

 

 

 

780

 

Total one-time fee income

 

 

3,214

 

 

 

780

 

Total fee income

 

 

7,415

 

 

 

3,322

 

Total investment income

 

 

73,619

 

 

 

58,795

 

Operating expenses:

 

 

 

 

 

 

 

 

Interest

 

 

14,532

 

 

 

12,555

 

Loan fees

 

 

1,794

 

 

 

3,009

 

General and administrative

 

 

 

 

 

 

 

 

Legal expenses

 

 

899

 

 

 

663

 

Tax expenses

 

 

1,135

 

 

 

298

 

Other expenses

 

 

4,025

 

 

 

3,192

 

Total general and administrative

 

 

6,059

 

 

 

4,153

 

Employee compensation

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

8,214

 

 

 

6,623

 

Stock-based compensation

 

 

2,440

 

 

 

3,422

 

Total employee compensation

 

 

10,654

 

 

 

10,045

 

Total operating expenses

 

 

33,039

 

 

 

29,762

 

Net investment income

 

 

40,580

 

 

 

29,033

 

Net realized gain (loss) on investments

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

6,967

 

 

 

4,555

 

Total net realized gain (loss) on investments

 

 

6,967

 

 

 

4,555

 

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

(58,430

)

 

 

32,091

 

Control investments

 

 

(7,851

)

 

 

(2,875

)

Affiliate investments

 

 

(9,989

)

 

 

(1,219

)

Total net unrealized appreciation (depreciation) on investments

 

 

(76,270

)

 

 

27,997

 

Total net realized and unrealized gain (loss)

 

 

(69,303

)

 

 

32,552

 

Net increase (decrease) in net assets resulting from operations

 

$

(28,723

)

 

$

61,585

 

 

 

 

 

 

 

 

 

 

Net investment income before investment gains and losses per common share:

 

Basic

 

$

0.37

 

 

$

0.30

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.27

)

 

$

0.64

 

Diluted

 

$

(0.27

)

 

$

0.64

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

108,955

 

 

 

96,218

 

Diluted

 

 

108,955

 

 

 

96,508

 

Distributions paid per common share:

 

 

 

 

 

 

 

 

Basic

 

$

0.40

 

 

$

0.31

 

 

See notes to consolidated financial statements

5


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Distributable

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

Earnings

 

 

Treasury

 

 

Net

 

For the Three Months Ended March 31, 2020

Shares

 

 

Par Value

 

 

of par value

 

 

(loss)

 

 

Stock

 

 

Assets

 

Balance at December 31, 2019

 

107,364

 

 

$

108

 

 

$

1,145,106

 

 

$

(12,165

)

 

$

 

 

$

1,133,049

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

(28,723

)

 

 

 

 

 

(28,723

)

Public offering, net of offering expenses

 

2,441

 

 

 

2

 

 

 

34,960

 

 

 

 

 

 

 

 

 

34,962

 

Issuance of common stock due to stock option exercises

 

29

 

 

 

 

 

 

362

 

 

 

 

 

 

 

 

 

362

 

Retired shares from net issuance

 

(24

)

 

 

 

 

 

(376

)

 

 

 

 

 

 

 

 

(376

)

Issuance of common stock under restricted stock plan

 

749

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(17

)

 

 

 

 

 

(880

)

 

 

 

 

 

 

 

 

(880

)

Distributions reinvested in common stock

 

59

 

 

 

 

 

 

827

 

 

 

 

 

 

 

 

 

827

 

Distributions

 

 

 

 

 

 

 

 

 

 

(44,223

)

 

 

 

 

 

(44,223

)

Stock-based compensation (1)

 

 

 

 

 

 

 

2,082

 

 

 

 

 

 

 

 

 

2,082

 

Balance at March 31, 2020

 

110,601

 

 

$

111

 

 

$

1,182,080

 

 

$

(85,111

)

 

$

 

 

$

1,097,080

 

 

(1)

Stock-based compensation includes $21 of restricted stock and option expense related to director compensation for the three months ended March 31, 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Distributable

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

Earnings

 

 

Treasury

 

 

Net

 

For the Three Months Ended March 31, 2019

 

Shares

 

 

Par Value

 

 

of par value

 

 

(loss)(2)

 

 

Stock

 

 

Assets

 

Balance at December 31, 2018

 

 

96,501

 

 

$

96

 

 

$

1,052,269

 

 

$

(92,859

)

 

$

(4,062

)

 

$

955,444

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

 

61,585

 

 

 

 

 

 

61,585

 

Public offering, net of offering expenses

 

 

 

 

 

 

 

 

(21

)

 

 

 

 

 

 

 

 

(21

)

Issuance of common stock due to stock option exercises

 

 

13

 

 

 

 

 

 

154

 

 

 

 

 

 

 

 

 

154

 

Retired shares from net issuance

 

 

(11

)

 

 

 

 

 

(159

)

 

 

 

 

 

 

 

 

(159

)

Issuance of common stock under restricted stock plan

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement of common stock under repurchase plan

 

 

 

 

 

 

 

 

(4,062

)

 

 

 

 

 

4,062

 

 

 

 

Retired shares for restricted stock vesting

 

 

(55

)

 

 

 

 

 

(691

)

 

 

 

 

 

 

 

 

(691

)

Distributions reinvested in common stock

 

 

47

 

 

 

 

 

 

632

 

 

 

 

 

 

 

 

 

632

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

(29,900

)

 

 

 

 

 

(29,900

)

Stock-based compensation (1)

 

 

 

 

 

 

 

 

3,305

 

 

 

 

 

 

 

 

 

3,305

 

Balance at March 31, 2019

 

 

96,543

 

 

$

96

 

 

$

1,051,427

 

 

$

(61,174

)

 

$

 

 

$

990,349

 

 

(1)

Stock-based compensation includes $7 of restricted stock and option expense related to director compensation for the three months ended March 31, 2019.

(2)

Certain prior year numbers have been adjusted to conform with the SEC final rules on disclosure updates and simplification effective November 5, 2018. See Note 11.

 

See notes to consolidated financial statements

6


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

For the Three Months Ended March 31,

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

$

(28,723

)

 

$

61,585

 

Adjustments to reconcile net increase in net assets resulting from

operations to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Purchase of investments

 

(233,612

)

 

 

(239,702

)

Principal and fee payments received on investments

 

167,511

 

 

 

65,845

 

Proceeds from the sale of investments

 

17,076

 

 

 

9,830

 

Net unrealized depreciation (appreciation) on investments

 

76,270

 

 

 

(27,997

)

Net realized loss (gain) on investments

 

(6,967

)

 

 

(4,555

)

Accretion of paid-in-kind principal

 

(2,130

)

 

 

(2,099

)

Accretion of loan discounts

 

(1,147

)

 

 

(737

)

Accretion of loan discount on convertible notes

 

168

 

 

 

168

 

Accretion of loan exit fees

 

(6,265

)

 

 

(5,199

)

Change in deferred loan origination revenue

 

1,319

 

 

 

3,754

 

Unearned fees related to unfunded commitments

 

(463

)

 

 

992

 

Amortization of debt fees and issuance costs

 

1,332

 

 

 

2,653

 

Depreciation

 

126

 

 

 

51

 

Stock-based compensation and amortization of restricted stock grants (1)

 

2,082

 

 

 

3,305

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Interest and fees receivable

 

1,070

 

 

 

(1,407

)

Prepaid expenses and other assets

 

(4,100

)

 

 

(9,272

)

Accounts payable

 

(16

)

 

 

(198

)

Accrued liabilities

 

(8,233

)

 

 

1,417

 

Net cash provided by (used in) operating activities

 

(24,702

)

 

 

(141,566

)

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of capital equipment

 

(29

)

 

 

(83

)

Net cash provided by (used in) investing activities

 

(29

)

 

 

(83

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Issuance of common stock, net

 

34,963

 

 

 

(43

)

Retirement of employee shares

 

(896

)

 

 

(676

)

Distributions paid

 

(43,396

)

 

 

(29,268

)

Issuance of 2028 Asset-Backed Notes

 

 

 

 

250,000

 

Issuance of February 2025 Notes

 

50,000

 

 

 

 

Repayments of 2024 Notes

 

 

 

 

(83,510

)

Repayments of Long-Term SBA Debentures

 

(38,750

)

 

 

 

Borrowings of credit facilities

 

242,026

 

 

 

110,834

 

Repayments of credit facilities

 

(274,819

)

 

 

(119,523

)

Cash paid for debt issuance costs

 

(618

)

 

 

(2,965

)

Fees paid for credit facilities and debentures

 

(2,433

)

 

 

(2,443

)

Net cash provided by (used in) financing activities

 

(33,923

)

 

 

122,406

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

(58,654

)

 

 

(19,243

)

Cash, cash equivalents, and restricted cash at beginning of period

 

114,996

 

 

 

45,857

 

Cash, cash equivalents, and restricted cash at end of period

$

56,342

 

 

$

26,614

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information and non-cash investing and financing activities:

 

Distributions reinvested

 

827

 

 

 

632

 

 

(1)

Stock-based compensation includes $21 and $7 of restricted stock and option expense related to director compensation for the three months ended March 31, 2020 and 2019, respectively.


See notes to consolidated financial statements

7


 

The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:

 

 

For the Three Months Ended March 31,

 

(Dollars in thousands)

2020

 

 

2019

 

Cash and cash equivalents

$

34,282

 

 

$

16,465

 

Restricted cash

 

22,060

 

 

 

10,149

 

Total cash, cash equivalents, and restricted cash presented in the Consolidated Statements of Cash Flows

$

56,342

 

 

$

26,614

 

See “Note 2 – Summary of Significant Accounting Policies” for a description of restricted cash and cash equivalents.

 

See notes to consolidated financial statements

8


HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2020

(unaudited)

(dollars in thousands)

 

 

 

Portfolio Company

Sub-Industry

Type of

Investment (1)

Maturity

Date

Interest Rate and Floor (2)

Principal

Amount

 

Cost (3)

 

Value (4)

 

Debt Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

Communications & Networking

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

Cytracom Holdings LLC (18)

Communications & Networking

Senior Secured

February 2025

Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%

$

7,000

 

$

6,793

 

$

6,793

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

6,793

 

 

6,793

 

Subtotal: Communications & Networking (0.62%)*

 

 

 

 

6,793

 

 

6,793

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

Gibraltar Business Capital, LLC (7)

Diversified Financial Services

Unsecured

March 2023

Interest rate FIXED 14.50%

$

15,000

 

 

14,794

 

 

14,794

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

14,794

 

 

14,794

 

Subtotal: Diversified Financial Services (1.35%)*

 

 

 

 

 

 

14,794

 

 

14,794

 

Drug Delivery

 

 

 

 

 

 

 

 

 

 

 

 

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

Antares Pharma Inc. (10)(11)(15)(17)

Drug Delivery

Senior Secured

July 2022

Interest rate PRIME + 4.50% or Floor rate of 8.50%, 4.14% Exit Fee

$

40,000

 

 

40,741

 

 

39,890

 

Subtotal: 1-5 Years Maturity

 

 

 

 

 

 

 

 

40,741

 

 

39,890

 

Subtotal: Drug Delivery (3.64%)*

 

 

 

 

40,741

 

 

39,890

 

Drug Discovery & Development

 

 

 

 

 

 

 

 

 

Under 1 Year Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

Axovant Gene Therapies Ltd. (p.k.a. Axovant Sciences Ltd.) (5)(10)(11)

Drug Discovery & Development

Senior Secured

March 2021

Interest rate PRIME + 6.80% or Floor rate of 11.55%

$

15,731

 

 

15,640

 

 

15,640

 

Metuchen Pharmaceuticals LLC (14)

Drug Discovery & Development

Senior Secured

October 2020

Interest rate PRIME + 7.25% or Floor rate of 10.75%, PIK Interest 1.35%, 2.25% Exit Fee

$

11,192

 

 

12,200

 

 

12,065

 

Stealth Bio Therapeutics Corp. (5)(10)(11)

Drug Discovery & Development

Senior Secured

January 2021

Interest rate PRIME + 5.50% or Floor rate of 9.50%, 6.68% Exit Fee

$

14,797

 

 

15,928

 

 

15,928

 

Subtotal: Under 1 Year Maturity

 

 

 

 

43,768

 

 

43,633

 

1-5 Years Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

Acacia Pharma Inc. (5)(10)(11)

Drug Discovery & Development

Senior Secured

January 2022

Interest rate PRIME + 4.50% or Floor rate of 9.25%, 3.95% Exit Fee

$