Hercules Technology Growth Capital, Inc., the finance company providing venture debt and equity to venture capital and private equity backed technology and life science companies, has successfully completed the full repayment of its $130.0 million credit facility with Citigroup and Deutsche Bank.
As outlined during the companys fourth quarter 2008 earnings call, Hercules has taken multiple steps to ensure its ability to fully repay the Citigroup and Deutsche Bank facility on or before the maturity date of 30 April 2009.
Hercules took prudent steps to ensure its ability to meet the maturity date by reducing its operating costs in the first quarter of 2009 and initiating a one-time stock and cash dividend to strategically ensure ample liquidity and capital to bolster its near-term liquidity position and further strengthen its balance sheet.
I am extremely pleased to report to our shareholders our continued commitment and progress in successfully deleveraging our balance sheet by fully repaying our $130.0 million credit facility with Citigroup and Deutsche Bank prior to its maturity date of 30 April 2009, says Manuel A. Henriquez, co-founder, chairman and chief executive officer, Hercules.
Hercules ability to amortize and repay approximately $130.0 million within five months during these most challenging times, provides further evidence of the asset class and of the continued focus and dedication of Hercules investment professionals to work diligently identifying and investing in the right companies while at the same time also remaining focused on managing our credit performance and balance sheet liquidity.
It is because of the hard work and dedication of our team, that Hercules has successfully reached this achievement in an extremely challenging credit and capital market environment through a combination of early and regularly scheduled loan repayments as well as borrowing approximately $25.7 million under our credit facility with Wells Fargo Foothill, continues Henriquez.
Our continued relationship with Wells Fargo Foothill coupled with our long-term and strategic funding relationship with the SBAs SBIC program provides Hercules with a long term source of capital while continuing to support and grow our investment portfolio,
I am just delighted the slow and steady strategy we adopted back in mid 2008 has proven to be an effective strategy during these challenging times and has afforded us the flexibility to manage our liquidity and credit portfolio.
L.D.