Hercules Technology plans to sell $75 million five-year convertibles to yield 5.5%-6%, up 15%

By Rebecca Melvin

New York, April 11 - Hercules Technology Growth Capital Inc. plans to price $75 million of five-year convertible senior notes as early as Monday after the close that were talked at a coupon of 5.5% to 6% with an initial conversion premium of 15%, according to a market source.

There is a $15 million greenshoe for the Rule 144A deal.

The bookrunner is RBC Capital Markets LLC.

The notes are non-callable and mature April 15, 2016.

There is contingent conversion subject to the underlying share price being 130% of conversion.

Proceeds will be used to fund investments in debt and equity securities in accordance with investment objectives and for general corporate purposes.

Palo Alto, Calif.-based Hercules Technology is a specialty finance company focused on technology and life science companies.

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