HerculesCapital Inc., through unit Hercules Funding III LLC, as borrower,on May 5 entered into a loan and security agreement with MUFG Union Bank NA andcertain lenders from time to time.

MUFG Union Bank NA, as the arranger and administrativeagent, has made commitments of $75.0 million, according to a Form 8-K filed May10.

The credit facility contains an accordion feature, in whichHercules Capital can increase the credit line up to an aggregate of $200.0million, funded by additional lenders and with the agreement of MUFG UnionBank. Borrowings will generally bear interest at either, if such borrowing is abase rate loan, a base rate per annum equal to the federal funds rate plus1.00%, LIBOR plus 1.00% or MUFG Union Bank's prime rate, in each case, plus amargin of 1.25%; or, if such borrowing is a LIBOR loan, a rate per annum equalto LIBOR plus 3.25%. The credit facility will generally have an advance rate of50% against eligible debt investments.

The credit facility is secured by Hercules Funding III'sassets. The credit facility requires payment of a non-use fee during therevolving credit availability period on a scale of 0.25% to 0.50% depending onthe average monthly outstanding balance under the facility relative to themaximum amount of commitments at such time. Hercules Capital paid a one-time$562,500 structuring fee in connection with the credit facility.

The credit facility matures May 5, 2020, unless soonerterminated in accordance with its terms.