Hercules Capital

Covenant analysis

CovenantTermvs marketSource
Other Permitted LC Facility Cap · IncurrenceAggregate amount shall not exceed the remainder of $400,000,000 minus the LC Exposure under this Agreementloose $400000bn vs incurrence median $560m (n=11)source ↗
Special Unsecured Indebtedness Cap · IncurrenceAggregate amount shall not exceed $1,500,000,000; combined with Unsecured Shorter-Term Indebtedness shall not exceed $1,500,000,000loose $1.5bn vs incurrence median $560m (n=11)source ↗
Investments in Non-Subsidiary Guarantors · Negative CovenantBorrowing Base after giving effect to Investment must be at least 110% of Covered Debt Amount, or Borrowing Base coverage not diminishedloose 110% vs negative covenant median 20% (n=79)source ↗
Covered Debt Amount vs. Borrowing Base · FinancialCovered Debt Amount shall not exceed the Borrowing Base then in effectsource ↗
Aggregate Covered Debt Amount vs. Aggregate Portfolio Balance · FinancialAggregate Covered Debt Amount shall not exceed the Aggregate Portfolio Balance then in effectsource ↗
Applicable Margin - Term Benchmark / RFR · Pricing1.350% if Borrowing Base >= 1.60x LC Exposure; 1.450% if Borrowing Base < 1.60x LC Exposuremarket 1.6x vs pricing median 2x (n=7)source ↗
Borrowing Base Deficiency Cure Period · MaintenanceMust be cured within 5 Business Days of Borrowing Base Certificate delivery, or within 30 Business Days under a feasible plansource ↗
Participation Interest Inclusion Period · PortfolioNo Participation Interest may be included in the Borrowing Base for more than 90 dayssource ↗
Commitment Fee Rate · Fees0.40% per annum on average daily unused Commitment from Third Amendment Effective Datesource ↗
Consolidated Asset Coverage Ratio · FinancialNot less than 150% at the last day of any fiscal quartertight 150% vs coverage median 25% (n=7)source ↗
Restricted Payments - Coverage Test · Restricted PaymentsCovered Debt Amount shall not exceed 90% of Borrowing Base; Aggregate Covered Debt Amount shall not exceed 90% of Aggregate Portfolio Balance; no Default continuingmarket 90% vs coverage median 25% (n=7)source ↗
Maximum Commitment Increase · StructuralTotal Commitments of the Issuing Bank shall not exceed $400,000,000market $400m vs structural median $375m (n=29)source ↗
Secured Indebtedness Cap · IncurrenceLiens securing Indebtedness not exceeding $50,000,000 at any one time outstandingtight $50m vs incurrence median $560m (n=11)source ↗
Other Indebtedness General Cap · IncurrenceNot to exceed $100,000,000 at any time outstandingtight $100m vs incurrence median $560m (n=11)source ↗
Non-Performing Portfolio Investments Cap · PortfolioNon-Performing Portfolio Investments shall not exceed 10%; Portfolio Investments that were Non-Performing at acquisition shall not exceed 5% of Aggregate Portfolio Balancemarket 10% vs portfolio median 10% (n=6)source ↗
Non-US Portfolio Investments Cap · PortfolioPortion attributable to Portfolio Investments outside specified countries shall not exceed 5% without Issuing Bank consenttight 5% vs portfolio median 10% (n=6)source ↗
Non-Performing/Non-Cash Pay Portfolio Cap · PortfolioPerforming Non-Cash Pay High Yield, Performing Non-Cash Pay Mezzanine, Equity Interests and Non-Performing Portfolio Investments shall not exceed 15% of Aggregate Portfolio Balanceloose 15% vs portfolio median 10% (n=6)source ↗
Equity Interests Cap · PortfolioPortion of Aggregate Portfolio Balance attributable to Equity Interests shall not exceed 10%market 10% vs portfolio median 10% (n=6)source ↗