Hercules Technology Growth Capital, Inc. (HTGC - Free Report) modified and reiterated its revolving senior secured credit facility with MUFG Union Bank, N.A. – a division of Mitsubishi UFJ Financial Group, Inc. (MTU - Free Report) .
Per the amendment and restatement on Aug 14, Hercules enhanced the credit facility size to $75 million from $30 million. The company may further augment the facility to an aggregate principal amount of $95 million through additional lenders according to an included accordion feature.
However, the exercising of this feature is subject to the approval of Union Bank and other customary conditions and there is no guarantee that the additional lenders will join the credit facility to increase available borrowings.
Further, the yearly interest rate on LIBOR borrowings made by Hercules under the credit facility has been trimmed down to LIBOR plus 2.25% from LIBOR plus 2.50% and the floor of 4% has been removed. The ceiling on a specific unsecured debt of the company has also been removed.
Moreover, the maturity date of the credit facility has been extended to Aug 1, 2017.
Hercules looks forward to a strong investment portfolio, driven by the flexibility of the new terms.
Currently, Hercules carries a Zacks Rank #3 (Hold). Some better-ranked finance stocks include Farmers Capital Bank Corporation (FFKT - Free Report) and AllianceBernstein Holding L.P. (AB - Free Report) . Both these stocks hold a Zacks Rank #1 (Strong Buy).