Hercules Capital Inc. htgc,
It sought to reassure investors on Monday by saying it was working with bondholders, stakeholders and stockholders to “navigate the challenges” created by regulators’ decision to set up SIVB, part of SIVB Financial Group.
Silicon Valley Bank in receivership. Shares of the specialty finance company, which provides loans to venture-capital-backed startups, fell 5.5% to a five-month low in premarket trading on Monday after falling 19.5% in the past two sessions as SVB troubles became public . “We are confident that we have sufficient liquidity to support our near-term capital requirements,” Hercules said in a statement. “As the venture capital industry continues to assess the impact of the SVB receivership, we will continue to evaluate our overall liquidity position and will take proactive steps to maintain an appropriate liquidity position based on current circumstances.” The company said it has set aside $50 million in capital to provide “select companies” with funding to be able to meet payroll and other obligations resulting from the closing of SVB. The stock is down 10.6% in the last three months through Friday while the S&P 500 SPX,
3.9% is broken.