In This Article:
The Total Cash Distribution of $0.47 per Share for the First Quarter 2025 is Comprised of a $0.40 per Share Base Distribution and an $0.07 per Share Supplemental Distribution
SAN MATEO, Calif., April 29, 2025--(BUSINESS WIRE)--Hercules Capital, Inc. (NYSE: HTGC) ("Hercules" or the "Company"), the largest and leading specialty finance provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, is pleased to announce that its Board of Directors has declared a first quarter 2025 total cash distribution of $0.47 per share. The following shows the key dates of the first quarter 2025 distribution payment:
Record Date May 13, 2025
Payment Date May 20, 2025
Hercules' Board of Directors maintains a variable distribution policy with the objective of distributing four quarterly distributions in an amount that approximates 90% to 100% of the Company’s taxable quarterly income or potential annual income for a particular year. In addition, during the year, the Company’s Board of Directors may choose to pay additional supplemental distributions, so that the Company may distribute approximately all its annual taxable income in the year it was earned, or it can elect to maintain the option to spill over the excess taxable income into the coming year for future distribution payments.
The determination of the tax attributes of the Company's distributions is made annually as of the end of the Company's fiscal year based upon its taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of its distributions for a full year. Of the distributions declared during the quarter ended March 31, 2025, 100% were distributions derived from the Company’s current earnings and profits. There can be no certainty to stockholders that this determination is representative of the tax attributes of the Company’s 2025 full year distributions to stockholders.
Pursuant to Internal Revenue Code Section 871(k), certain funds generate "Qualified Interest Income" (QII) that may be exempt for U.S. withholding tax on foreign accounts. A regulated investment company ("RIC") is permitted to designate distributions of QII as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation.
The percentage of QII for distributions declared for the first quarter ended March 31, 2025 on Hercules’ common stock is 79.97%.