Hercules Capital sees additional 4c of annual NII from federal rate increase
Hercules Capital estimated accretive impact to its debt investment portfolio attributed to the Federal Reserve - Federal Open Market Committee's increase in the federal funds rate by 25 basis points, or 0.25%. Hercules anticipates a 25 basis point increase in the Prime Rate will contribute approximately $3.1M, or 4c per share, of NII per annum. As of March 31, 2018, 96.5% of Hercules' debt investment portfolio of $1.4B was primarily priced at PRIME or LIBOR-based floating interest rates, while 100.0% of the company's outstanding debt obligations have a fixed rate of interest. The anticipated increase is not expected to have any material impact to NII in Q2. The expected benefit from the June 2018 rate increase is expected to materialize beginning with the Q3 operating period.