Hercules Capital Announces Quarterly Cash Distribution Plan
Hercules Capital’s Q4 2024 Cash Distribution Announcement
Hercules Capital, Inc. (NYSE: HTGC), renowned for its innovative financial solutions, has recently declared a quarterly cash distribution of $0.47 per share for the fourth quarter of 2024. This announcement reflects the company’s ongoing commitment to rewarding its shareholders while focusing on sustainable growth and investments.
Key Dates for Distribution Payment
The Board of Directors has set key dates for this cash distribution, which are pivotal for shareholders tracking their investments. The record date for this distribution is February 26, 2025, and payment will be made on March 5, 2025. Shareholders should mark their calendars to ensure they receive their entitled distributions.
Strategic Distribution Policy
Hercules Capital has a well-defined variable distribution policy designed to approximate 90% to 100% of its taxable income quarterly. This strategy is crucial for ensuring that shareholders receive a fair return on their investments while allowing for strategic reinvestments. The company also considers the possibility of additional supplemental distributions throughout the year, aiming to distribute nearly all its annual taxable income.
Understanding Tax Attributes of Distributions
The tax attributes associated with the distributions made by Hercules Capital are determined annually, providing precise insights into the financial health and tax implications of their cash distributions. Notably, all distributions for the quarter ended December 31, 2024, were derived entirely from the company’s current and accumulated earnings and profits. Hence, shareholders can expect the distributions to be reflective of fiscal integrity.
Qualified Interest Income Exemption
Under the Internal Revenue Code Section 871(k), certain funds are recognized for generating “Qualified Interest Income” (QII), which has potential exemptions from U.S. withholding tax for foreign accounts. Hercules has successfully designated a significant portion of its distributions as QII, providing additional financial advantages to its international shareholders.
Recent Performance and Future Outlook
Hercules Capital has established itself as a dominant player in the specialty finance sector, focusing on providing secured loans to high-growth companies across various sectors, including technology and life sciences. Since its inception, the company has pledged over $21 billion to more than 660 companies, solidifying its status as a lender of choice.
About Hercules Capital
As the largest specialty finance firm, Hercules Capital is dedicated to empowering entrepreneurial ventures through tailored financial solutions. The firm maintains an asset management branch through its wholly-owned subsidiary, Hercules Adviser LLC, which manages investments for external parties with a commitment to high standards in investment advisory services.
Trading Information and Future Fund Initiatives
Hercules Capital's shares are traded on the New York Stock Exchange (NYSE) under the ticker symbol "HTGC," alongside its retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY). Such initiatives reflect Hercules' innovative approach towards offering comprehensive funding solutions tailored precisely for growth-oriented enterprises.
Frequently Asked Questions
What is the cash distribution amount declared by Hercules Capital?
Hercules Capital has declared a cash distribution of $0.47 per share for the fourth quarter of 2024.
When will shareholders receive the cash distribution?
The payment date for the declared cash distribution is set for March 5, 2025, with a record date of February 26, 2025.
What is the purpose of Hercules Capital's variable distribution policy?
The variable distribution policy aims to distribute a significant portion of the company’s taxable income, providing shareholders with returns while supporting the company's growth.
How does Hercules Capital qualify its distributions under U.S. tax law?
Hercules Capital designates certain distributions as “Qualified Interest Income” (QII), potentially exempting them from U.S. withholding tax for non-U.S. shareholders.
What sectors does Hercules Capital focus on for its financing?
Hercules Capital is primarily focused on providing loans to high-growth companies in technology and life sciences sectors, reinforcing its position as a leading specialty finance provider.
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