Item 1.01. Entry into a Material Definitive Agreement.
Revolving Credit Agreement
On
Availability under the Credit Facility will terminate on
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 elects 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, is payable at an "alternate base rate" (which is the greater of
(x) zero and (y) the highest of (a) the prime rate as published in the print
edition of
In connection with the Credit Facility, the Company has made certain representations and warranties and must comply with certain affirmative and negative covenants, including, but not limited to, (i) maintaining minimum shareholders' equity, measured as of each fiscal quarter end, (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 Company Act of 1940, as amended. The Credit Facility also permits the administrative agent to select an independent third-party valuation firm to determine valuations of certain portfolio investments for purposes of borrowing base. In connection with the Credit Facility, the Company also entered into new collateral documents.
The Credit Facility also contains customary events of default with customary cure and notice provisions, including, without limitation, nonpayment, misrepresentation of representations and warranties in a material respect, breach of covenant, cross-default and cross-acceleration to other indebtedness and bankruptcy. Upon the occurrence of an event of default, SMBC, as administrative agent, may, and at the request of the required lenders shall, terminate the commitments and declare the outstanding advances and all other obligations under the Credit Facility immediately due and payable.
--------------------------------------------------------------------------------
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 to this Current Report on Form 8-K and incorporated by reference herein.
Item 2.03. Creation of a direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description 10.1 Revolving Credit Agreement, dated as ofNovember 9, 2021 , amongHercules Capital, Inc. , the lenders and issuing banks from time to time party thereto andSumitomo Mitsui Banking Corporation , as administrative agent. 99.1 Press Release datedNovember 10, 2021
--------------------------------------------------------------------------------
© Edgar Online, source