BDC Hercules Capital Prices Baby Bonds

BDC Hercules Capital has priced their new baby bonds with a coupon of 6.25%.  This is a full percentage point above the last issue the company sold.

Please note that the maturity date is substantially longer than issues Hercules has sold in the past–it is 2033.  They are paying a premium coupon based, at least partially, based upon the longer dated maturity.

The company has stated that they may call the balance of their 6.25% issue which is due in 2024 (NASDAQ:HTGX).  This issue is now trading at $25.26 so their is virtually no call risk in holding them.  They had previously partially called this issue.

Additionally the company has a 5.25% issue outstanding (NASDAQ:NCXZ) which is due in 2025 and is trading at $24.84.

The pricing document on the new issue is here.  The new issue will trade with the permanent ticker of HCXY when it trades in the next week or so.  There will not be any OTC Grey market on the issue.

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