Hercules Capital Inc. plans to offer $150.0 million of its convertible senior notes due Feb. 1, 2022.

The notes will be unsecured, will be offered only to qualified institutional buyers, will pay interest semiannually and will be convertible under specified circumstances based on a conversion rate yet to be determined.

The company plans to grant the initial buyer the option to buy up to an additional $22.5 million of the notes to cover any overallotments.

Hercules Capital plans to use the net proceeds from this offering to repurchase or otherwise redeem all of its 7.00% notes due 2019, to fund investments in debt and equity securities, and for working capital and other general corporate purposes.