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Debt | 9 Months Ended
--- | ---
Sep. 30, 2025
Debt Disclosure [Abstract] |
Debt | Debt As of September 30, 2025 and December 31, 2024, the Company had the following available and outstanding debt:
(in thousands) | September 30, 2025 |  | December 31, 2024
| Total Available |  | Principal Outstanding |  | Carrying Value(1) |  | Total Available |  | Principal Outstanding |  | Carrying Value(1)
SBA Debentures(2)(4) | $ | 350,000 |  |  | $ | 350,000 |  |  | $ | 340,717 |  |  | $ | 350,000 |  |  | $ | 279,000 |  |  | $ | 271,371 |
February 2025 Notes | — |  |  | — |  |  | — |  |  | 50,000 |  |  | 50,000 |  |  | 49,981 |
June 2025 Notes | — |  |  | — |  |  | — |  |  | 70,000 |  |  | 70,000 |  |  | 69,919 |
June 2025 3-Year Notes | — |  |  | — |  |  | — |  |  | 50,000 |  |  | 50,000 |  |  | 49,926 |
March 2026 A Notes | 50,000 |  |  | 50,000 |  |  | 49,961 |  |  | 50,000 |  |  | 50,000 |  |  | 49,889 |
March 2026 B Notes | 50,000 |  |  | 50,000 |  |  | 49,957 |  |  | 50,000 |  |  | 50,000 |  |  | 49,880 |
September 2026 Notes | 325,000 |  |  | 325,000 |  |  | 324,057 |  |  | 325,000 |  |  | 325,000 |  |  | 323,321 |
January 2027 Notes | 350,000 |  |  | 350,000 |  |  | 348,263 |  |  | 350,000 |  |  | 350,000 |  |  | 347,265 |
2028 Convertible Notes | 287,500 |  |  | 287,500 |  |  | 279,747 |  |  | — |  |  | — |  |  | — |
June 2030 Notes | 350,000 |  |  | 350,000 |  |  | 342,219 |  |  | — |  |  | — |  |  | — |
2031 Asset-Backed Notes | 88,639 |  |  | 88,639 |  |  | 88,391 |  |  | 119,475 |  |  | 119,475 |  |  | 118,769 |
2033 Notes | 40,000 |  |  | 40,000 |  |  | 39,124 |  |  | 40,000 |  |  | 40,000 |  |  | 39,043 |
MUFG Bank Facility(2) | 440,000 |  |  | 66,000 |  |  | 66,000 |  |  | 400,000 |  |  | 116,000 |  |  | 116,000 |
SMBC Facility(2)(3)(5) | 475,000 |  |  | 222,866 |  |  | 222,702 |  |  | 475,000 |  |  | 283,790 |  |  | 283,591 |
Total | $ | 2,806,139 |  |  | $ | 2,180,005 |  |  | $ | 2,151,138 |  |  | $ | 2,329,475 |  |  | $ | 1,783,265 |  |  | $ | 1,768,955 |
(1)Except for the SMBC Facility and MUFG Bank Facility, all carrying values represent the principal amount outstanding less the remaining unamortized debt issuance costs and unaccreted premium or discount, if any, associated with the debt as of the balance sheet date. (2)Availability subject to the Company meeting the borrowing base requirements. (3)“Total Available” includes $175.0 million of available commitment through the letter of credit facility as of September 30, 2025 and December 31, 2024. (4)As of September 30, 2025 and December 31, 2024, the total available debt under the SBA Debentures was $350.0 million, of which $175.0 million was available to HC IV and $175.0 million was available to SBIC V. (5)In November 2024, the Company amended its SMBC Facility and converted a portion of the existing revolver facility into a term loan facility in connection therewith. As of September 30, 2025, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.8 million respectively. As of December 31, 2024, the term loan portion of the SMBC Facility for total available, outstanding principal, and carrying value was $25.0 million, $25.0 million, and $24.8 million, respectively. Debt issuance costs, net of accumulated amortization, were as follows as of September 30, 2025 and December 31, 2024:
(in thousands) |  | September 30, 2025 |  | December 31, 2024
SBA Debentures |  | $ | 9,283 |  |  | $ | 7,629 |
February 2025 Notes |  | — |  |  | 19 |
June 2025 Notes |  | — |  |  | 81 |
June 2025 3-Year Notes |  | — |  |  | 74 |
March 2026 A Notes |  | 39 |  |  | 111 |
March 2026 B Notes |  | 43 |  |  | 120 |
September 2026 Notes |  | 943 |  |  | 1,679 |
January 2027 Notes |  | 1,737 |  |  | 2,735 |
2028 Convertible Notes |  | 7,753 |  |  | — |
June 2030 Notes |  | 7,781 |  |  | — |
2031 Asset-Backed Notes |  | 248 |  |  | 706 |
2033 Notes |  | 876 |  |  | 957 |
MUFG Bank Facility(1) |  | 3,803 |  |  | 1,770 |
SMBC Facility(1)(2) |  | 2,417 |  |  | 2,693 |
Total |  | $ | 34,923 |  |  | $ | 18,574 |
(1)The MUFG Bank Facility and SMBC Facility are line-of-credit arrangements, the debt issuance costs associated with these instruments are included within Other assets on the Consolidated Statements of Assets and Liabilities in accordance with ASC Subtopic 835-30. (2)As part of the November 2024 amendment of the SMBC Facility, the existing revolver facility was split into a revolver facility and a term loan facility. As of September 30, 2025, the debt issuance costs, net of accumulated amortization of the revolver facility is $2.2 million and the term loan is $0.2 million. As of December 31, 2024, the debt issuance costs, net of accumulated amortization of the revolver facility is $2.5 million and the term loan is $0.2 million. For the three and nine months ended September 30, 2025, the components of interest expense, related fees, losses on debt extinguishment and cash paid for interest expense for debt were as follows:
(in thousands) |  | Three Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2025
Description |  | Interest expense(1) |  | Amortization of debt issuance cost (loan fees) |  | Unused facility and other fees (loan fees) |  | Total interest expense and fees |  | Cash paid for interest expense |  | Interest expense(1) |  | Amortization of debt issuance cost (loan fees) |  | Unused facility and other fees (loan fees) |  | Total interest expense and fees |  | Cash paid for interest expense
SBA Debentures |  | $ | 3,381 |  |  | $ | 295 |  |  | $ | — |  |  | $ | 3,676 |  |  | $ | 5,892 |  |  | $ | 8,806 |  |  | $ | 785 |  |  | $ | — |  |  | $ | 9,591 |  |  | $ | 9,863 |
February 2025 Notes |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 202 |  |  | 19 |  |  | — |  |  | 221 |  |  | 1,070 |
June 2025 Notes |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,274 |  |  | 81 |  |  | — |  |  | 1,355 |  |  | 1,508 |
June 2025 3-Year Notes |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,433 |  |  | 74 |  |  | — |  |  | 1,507 |  |  | 1,500 |
March 2026 A Notes |  | 562 |  |  | 23 |  |  | — |  |  | 585 |  |  | 1,125 |  |  | 1,687 |  |  | 71 |  |  | — |  |  | 1,758 |  |  | 2,250 |
March 2026 B Notes |  | 569 |  |  | 25 |  |  | — |  |  | 594 |  |  | 1,138 |  |  | 1,706 |  |  | 77 |  |  | — |  |  | 1,783 |  |  | 2,276 |
September 2026 Notes |  | 2,174 |  |  | 204 |  |  | — |  |  | 2,378 |  |  | 4,266 |  |  | 6,523 |  |  | 611 |  |  | — |  |  | 7,134 |  |  | 8,532 |
January 2027 Notes |  | 3,079 |  |  | 208 |  |  | — |  |  | 3,287 |  |  | 5,906 |  |  | 9,236 |  |  | 621 |  |  | — |  |  | 9,857 |  |  | 11,812 |
2028 Convertible Notes |  | 3,763 |  |  | 353 |  |  | — |  |  | 4,116 |  |  | 6,487 |  |  | 8,315 |  |  | 781 |  |  | — |  |  | 9,096 |  |  | 6,487 |
June 2030 Notes |  | 5,441 |  |  | 221 |  |  | — |  |  | 5,662 |  |  | — |  |  | 6,348 |  |  | 258 |  |  | — |  |  | 6,606 |  |  | — |
2031 Asset-Backed Notes(2) |  | 1,243 |  |  | 69 |  |  | — |  |  | 1,312 |  |  | 1,241 |  |  | 4,206 |  |  | 229 |  |  | — |  |  | 4,435 |  |  | 4,139 |
2033 Notes |  | 625 |  |  | 27 |  |  | — |  |  | 652 |  |  | 625 |  |  | 1,875 |  |  | 81 |  |  | — |  |  | 1,956 |  |  | 1,875 |
MUFG Bank Facility |  | 1,191 |  |  | 259 |  |  | 798 |  |  | 2,248 |  |  | 1,210 |  |  | 5,736 |  |  | 1,083 |  |  | 1,997 |  |  | 8,816 |  |  | 5,719 |
SMBC Facility |  | 2,161 |  |  | 203 |  |  | 319 |  |  | 2,683 |  |  | 1,897 |  |  | 9,470 |  |  | 614 |  |  | 767 |  |  | 10,851 |  |  | 9,764 |
Total |  | $ | 24,189 |  |  | $ | 1,887 |  |  | $ | 1,117 |  |  | $ | 27,193 |  |  | $ | 29,787 |  |  | $ | 66,817 |  |  | $ | 5,385 |  |  | $ | 2,764 |  |  | $ | 74,966 |  |  | $ | 66,795 |
(1)Interest expense includes amortization of OID for the three months ended September 30, 2025, of $42 thousand, $126 thousand, $311 thousand, $191 thousand, and $34 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively. Interest expense includes amortization of OID for the nine months ended September 30, 2025, of $125 thousand, $377 thousand, $690 thousand, $223 thousand, and $109 thousand related to the September 2026 Notes, January 2027 Notes, 2028 Convertible Notes, June 2030 Notes, and 2031 Asset-Backed Notes, respectively. (2)During the three and nine months ended September 30, 2025, we have recognized $84 thousand and $120 thousand, respectively, of loss on debt extinguishment for 2031 Asset-Backed Notes. For the three and nine months ended September 30, 2024, the components of interest expense, related fees, and cash paid for interest expense for debt were as follows:
(in thousands) |  | Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
Description |  | Interest expense(1) |  | Amortization of debt issuance cost (loan fees) |  | Unused facility and other fees (loan fees) |  | Total interest expense and fees |  | Cash paid for interest expense |  | Interest expense(1) |  | Amortization of debt issuance cost (loan fees) |  | Unused facility and other fees (loan fees) |  | Total interest expense and fees |  | Cash paid for interest expense
SBA Debentures |  | $ | 1,149 |  |  | $ | 147 |  |  | $ | — |  |  | $ | 1,296 |  |  | $ | 2,300 |  |  | $ | 3,424 |  |  | $ | 439 |  |  | $ | — |  |  | $ | 3,863 |  |  | $ | 4,575 |
July 2024 Notes |  | 202 |  |  | 24 |  |  | — |  |  | 226 |  |  | 2,504 |  |  | 2,706 |  |  | 172 |  |  | — |  |  | 2,878 |  |  | 5,008 |
February 2025 Notes |  | 535 |  |  | 29 |  |  | — |  |  | 564 |  |  | 1,070 |  |  | 1,605 |  |  | 86 |  |  | — |  |  | 1,691 |  |  | 2,140 |
June 2025 Notes |  | 755 |  |  | 40 |  |  | — |  |  | 795 |  |  | — |  |  | 2,263 |  |  | 121 |  |  | — |  |  | 2,384 |  |  | 1,508 |
June 2025 3-Year Notes |  | 750 |  |  | 38 |  |  | — |  |  | 788 |  |  | — |  |  | 2,250 |  |  | 116 |  |  | — |  |  | 2,366 |  |  | 1,500 |
March 2026 A Notes |  | 563 |  |  | 24 |  |  | — |  |  | 587 |  |  | 1,125 |  |  | 1,688 |  |  | 71 |  |  | — |  |  | 1,759 |  |  | 2,250 |
March 2026 B Notes |  | 568 |  |  | 25 |  |  | — |  |  | 593 |  |  | 1,138 |  |  | 1,706 |  |  | 77 |  |  | — |  |  | 1,783 |  |  | 2,276 |
September 2026 Notes |  | 2,174 |  |  | 205 |  |  | — |  |  | 2,379 |  |  | 4,266 |  |  | 6,523 |  |  | 612 |  |  | — |  |  | 7,135 |  |  | 8,531 |
January 2027 Notes |  | 3,080 |  |  | 208 |  |  | — |  |  | 3,288 |  |  | 5,906 |  |  | 9,236 |  |  | 622 |  |  | — |  |  | 9,858 |  |  | 11,812 |
2031 Asset-Backed Notes |  | 1,903 |  |  | 100 |  |  | — |  |  | 2,003 |  |  | 1,856 |  |  | 5,710 |  |  | 300 |  |  | — |  |  | 6,010 |  |  | 5,568 |
2033 Notes |  | 625 |  |  | 27 |  |  | — |  |  | 652 |  |  | 625 |  |  | 1,875 |  |  | 81 |  |  | — |  |  | 1,956 |  |  | 1,875 |
MUFG Bank Facility |  | 4,105 |  |  | 443 |  |  | 329 |  |  | 4,877 |  |  | 3,875 |  |  | 8,181 |  |  | 1,328 |  |  | 1,572 |  |  | 11,081 |  |  | 7,596 |
SMBC Facility |  | 3,961 |  |  | 180 |  |  | 174 |  |  | 4,315 |  |  | 4,020 |  |  | 9,989 |  |  | 540 |  |  | 599 |  |  | 11,128 |  |  | 9,582 |
Total |  | $ | 20,370 |  |  | $ | 1,490 |  |  | $ | 503 |  |  | $ | 22,363 |  |  | $ | 28,685 |  |  | $ | 57,156 |  |  | $ | 4,565 |  |  | $ | 2,171 |  |  | $ | 63,892 |  |  | $ | 64,221 |
(1)Interest expense includes amortization of OID for the three months ended September 30, 2024 of $42 thousand, $126 thousand, and $47 thousand related to the September 2026 Notes, January 2027 Notes, and 2031 Asset-Backed Notes, respectively. Interest expense includes amortization of OID for the nine months ended September 30, 2024 of $125 thousand, $377 thousand, and $141 thousand related to the September 2026 Notes, January 2027 Notes, and 2031 Asset-Backed Notes, respectively. The overall weighted average interest cost, cost of debt and debt outstanding for the Company for the three and nine months ended September 30, 2025 and 2024 were as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Weighted average interest cost |  | 4.4 | % |  | 4.6 | % |  | 4.3 | % |  | 4.4 | %
Weighted average cost of debt(1) |  | 5.1 | % |  | 5.1 | % |  | 4.9 | % |  | 5.0 | %
Weighted average debt outstanding |  | $ | 2,128,248 |  |  | $ | 1,736,913 |  |  | $ | 2,029,422 |  |  | $ | 1,696,442 |
(1)Cost of debt includes interest and fees. As of September 30, 2025 and December 31, 2024, the Company was in compliance with the terms of all borrowing arrangements. There are no sinking fund requirements for any of the Company's debt. SBA Debentures The Company held the following SBA debentures outstanding principal balances as of September 30, 2025 and December 31, 2024:
(in thousands) Issuance/Pooling Date |  | Maturity Date |  | Interest Rate(1) |  | September 30, 2025 |  | December 31, 2024
March 26, 2021 |  | September 1, 2031 |  | 1.58% |  | $ | 37,500 |  |  | $ | 37,500 |
June 25, 2021 |  | September 1, 2031 |  | 1.58% |  | 16,200 |  |  | 16,200 |
July 28, 2021 |  | September 1, 2031 |  | 1.58% |  | 5,400 |  |  | 5,400 |
August 20, 2021 |  | September 1, 2031 |  | 1.58% |  | 5,400 |  |  | 5,400 |
October 21, 2021 |  | March 1, 2032 |  | 3.21% |  | 14,000 |  |  | 14,000 |
November 1, 2021 |  | March 1, 2032 |  | 3.21% |  | 21,000 |  |  | 21,000 |
November 15, 2021 |  | March 1, 2032 |  | 3.21% |  | 5,200 |  |  | 5,200 |
November 30, 2021 |  | March 1, 2032 |  | 3.21% |  | 20,800 |  |  | 20,800 |
December 20, 2021 |  | March 1, 2032 |  | 3.21% |  | 10,000 |  |  | 10,000 |
December 23, 2021 |  | March 1, 2032 |  | 3.21% |  | 10,000 |  |  | 10,000 |
December 28, 2021 |  | March 1, 2032 |  | 3.21% |  | 5,000 |  |  | 5,000 |
January 14, 2022 |  | March 1, 2032 |  | 3.21% |  | 4,500 |  |  | 4,500 |
January 21, 2022 |  | March 1, 2032 |  | 3.21% |  | 20,000 |  |  | 20,000 |
November 8, 2024 |  | March 1, 2035 |  | 5.09% |  | 30,000 |  |  | 30,000 |
December 6, 2024 |  | March 1, 2035 |  | 5.09% |  | 33,600 |  |  | 33,600 |
December 12, 2024 |  | March 1, 2035 |  | 5.09% |  | 8,400 |  |  | 8,400 |
December 20, 2024 |  | March 1, 2035 |  | 5.09% |  | 32,000 |  |  | 32,000 |
February 5, 2025 |  | March 1, 2035 |  | 5.09% |  | 6,000 |  |  | — |
March 28, 2025 |  | September 1, 2035 |  | 4.66% |  | 10,000 |  |  | — |
April 25, 2025 |  | September 1, 2035 |  | 4.66% |  | 15,000 |  |  | — |
May 9, 2025 |  | September 1, 2035 |  | 4.66% |  | 5,000 |  |  | — |
June 5, 2025 |  | September 1, 2035 |  | 4.66% |  | 17,000 |  |  | — |
June 12, 2025 |  | September 1, 2035 |  | 4.66% |  | 3,000 |  |  | — |
June 25, 2025 |  | September 1, 2035 |  | 4.66% |  | 15,000 |  |  | — |
Total SBA Debentures |  |  |  |  |  | $ | 350,000 |  |  | $ | 279,000 |
(1)Interest rates are determined initially at issuance and reset to a fixed rate at the debentures pooling date. The rates are inclusive of annual SBA charges. SBICs are subject to a variety of regulations and oversight by the SBA concerning the size and nature of the companies in which they may invest as well as the structures of those investments. The SBA as part of its oversight periodically examines and audits to determine SBICs' compliance with SBA regulations. HC IV and SBIC V each received their licenses to operate as an SBIC on October 27, 2020 and July 9, 2024, respectively, and each license has a 10 year term. Each license provides the Company access to up to $175.0 million of capital through the SBA debenture program, subject to maintaining certain capital commitments. HC IV and SBIC V have each issued the entire $175.0 million in SBIC guaranteed debentures. SBA debentures bear fixed interest based on the treasury rate plus a spread applicable for the period the debentures are drawn. The Company's SBICs were in compliance with all SBIC terms, including those pertaining to the SBA Debentures as of September 30, 2025 and December 31, 2024. The following table summarizes information related to our SBICs as of September 30, 2025 and December 31, 2024.
|  | September 30, 2025 |  | December 31, 2024
Description |  | HC IV | SBIC V |  | HC IV | SBIC V
Number of investments held |  | 40 | 23 |  | 33 | 11 |
Fair value of investments (in millions) |  | $ | 411.3 | $ | 272.5 |  | $ | 377.7 | $ | 155.6 |
Percentage of fair value of investments based on the Company's total investment portfolio |  | 9.6 | % | 6.3 | % |  | 10.3 | % | 4.3 | %
Tangible assets (in millions) |  | $ | 416.3 | $ | 276.3 |  | $ | 382.9 | $ | 157.8 |
Percentage of tangible assets based on the Company's total assets |  | 9.4 | % | 6.3 | % |  | 10.0 | % | 4.1 | %
July 2024 Notes On July 16, 2019, the Company issued $105.0 million in aggregate principal amount of 4.770% interest-bearing unsecured notes due on July 16, 2024 (the “July 2024 Notes”), unless repurchased in accordance with their terms, to qualified institutional investors in a private placement notes offering. Interest on the July 2024 Notes was due semiannually. The July 2024 Notes were the general unsecured obligations of the Company that ranked pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. On July 16, 2024, the Company fully repaid the aggregate outstanding $105.0 million principal and $2.5 million of accrued interest pursuant to the terms of the July 2024 Notes. February 2025 Notes On February 5, 2020, the Company issued $50.0 million in aggregate principal amount of 4.280% interest-bearing unsecured notes due February 5, 2025 (the “February 2025 Notes”), unless repurchased in accordance with their terms, to qualified institutional investors in a private placement notes offering. Interest on the February 2025 Notes was due semiannually. The February 2025 Notes were the general unsecured obligations of the Company that ranked pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. On February 5, 2025, the Company fully repaid the aggregate outstanding $50.0 million principal and $1.1 million of accrued interest pursuant to the terms of the February 2025 Notes. June 2025 Notes On June 3, 2020, the Company issued $70.0 million in aggregate principal amount of 4.310% interest-bearing unsecured notes due June 3, 2025 (the “June 2025 Notes”), unless repurchased in accordance with their terms, to qualified institutional investors in a private placement notes offering. Interest on the June 2025 Notes was due semiannually. The June 2025 Notes were the general unsecured obligations of the Company that ranked pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. On June 3, 2025, the Company fully repaid the aggregate outstanding $70.0 million principal and $1.5 million of accrued interest pursuant to the terms of the June 2025 Notes. June 2025 3-Year Notes On June 23, 2022, the Company issued $50.0 million in aggregate principal amount of 6.000% interest-bearing unsecured notes due June 23, 2025 (the “June 2025 3-Year Notes”), unless repurchased in accordance with their terms, to qualified institutional investors in a private placement notes offering. Interest on the June 2025 3-Year Notes was due semiannually. The June 2025 3-Year Notes were the general unsecured obligations of the Company that ranked pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. On June 23, 2025, the Company fully repaid the aggregate outstanding $50.0 million principal and $1.5 million of accrued interest pursuant to the terms of the June 2025 3-Year Notes. March 2026 A Notes On November 4, 2020, the Company issued $50.0 million in aggregate principal amount of 4.500% interest-bearing unsecured notes due March 4, 2026 (the “March 2026 A Notes”), unless repurchased in accordance with their terms, to qualified institutional investors in a private placement notes offering. Interest on the March 2026 A Notes is due semiannually. The March 2026 A Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The March 2026 A Notes may be redeemed in whole or in part at any time or from time to time at the Company’s option plus a "make whole" premium, if applicable. March 2026 B Notes On March 4, 2021, the Company issued $50.0 million in aggregate principal amount of 4.550% interest-bearing unsecured notes due March 4, 2026 (the “March 2026 B Notes”), unless repurchased in accordance with their terms, to qualified institutional investors in a private placement pursuant note offering. Interest on the March 2026 B Notes is due semiannually. The March 2026 B Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The March 2026 B Notes may be redeemed in whole or in part at any time or from time to time at the Company’s option plus a "make whole" premium, if applicable. September 2026 Notes On September 16, 2021, the Company issued $325.0 million in aggregate principal amount of 2.625% interest-bearing unsecured notes due September 16, 2026 (the “September 2026 Notes”), unless repurchased in accordance with the terms of the Seventh Supplemental Indenture, dated September 16, 2021 (the “Seventh Supplemental Indenture”). Interest on the September 2026 Notes is payable semiannually in arrears on March 16 and September 16 of each year. The September 2026 Notes are general unsecured obligations and rank pari passu, or equally in right of payment, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The Company may redeem some or all of the September 2026 Notes at any time, or from time to time, at the redemption price set forth under the terms of the Seventh Supplemental Indenture. January 2027 Notes On January 20, 2022, the Company issued $350.0 million in aggregate principal amount of 3.375% interest-bearing unsecured notes due January 20, 2027 (the “January 2027 Notes”), unless repurchased in accordance with the terms of the Eight Supplemental Indenture, dated January 20, 2022 (the “Eighth Supplemental Indenture”). Interest on the January 2027 Notes is payable semiannually in arrears on January 20 and July 20 of each year. The January 2027 Notes are general unsecured obligations and rank pari passu, or equally in right of payment, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The Company may redeem some or all of the January 2027 Notes at any time, or from time to time, at the redemption price set forth under the terms of the Eighth Supplemental Indenture. 2028 Convertible Notes On March 10, 2025, the Company issued $287.5 million in aggregate principal amount of 4.750% interest-bearing convertible unsecured notes due on September 1, 2028 (the "2028 Convertible Notes"), unless previously converted or caused to repurchase the notes in accordance with their terms by the holders of the 2028 Convertible Notes. The Company may not redeem the 2028 Convertible Notes at its option prior to maturity. Interest on the 2028 Convertible Notes is due semiannually. The 2028 Convertible Notes are unsecured obligations of the Company and rank pari passu, or equally in right of payment, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. Prior to the close of business on the business day immediately preceding March 1, 2028, holders may convert their 2028 Convertible Notes only under certain circumstances set forth in the 2028 Convertible Notes Indenture, dated March 10, 2025, between the Company and U.S. Bank Trust Company, National Association, as trustee. On or after March 1, 2028 until the close of business on the scheduled trading day immediately preceding the maturity date, holders may convert their 2028 Convertible Notes at any time. Upon conversion, the Company will pay or deliver, as the case may be, at its election, cash, shares of its common stock or a combination of cash and shares of its common stock, subject to an irrevocable settlement method election that may be made by the Company. The conversion rate is initially 46.5631 shares of common stock per $1,000 principal amount of 2028 Convertible Notes (equivalent to an initial conversion price of $21.48 per share of common stock). The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, if certain corporate events occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its 2028 Convertible Notes in connection with such a corporate event in certain circumstances. As of September 30, 2025, the conversion rate was 46.5631 shares of common stock per $1,000 principal amount of 2028 Convertible Notes or conversion price of $21.48 per share of common stock. June 2030 Notes On June 16, 2025, the Company issued $350.0 million in aggregate principal amount of 6.000% interest-bearing unsecured notes due June 16, 2030 (the “June 2030 Notes”), unless repurchased in accordance with the terms of the Ninth Supplemental Indenture, dated June 16, 2025 (the “Ninth Supplemental Indenture”). Interest on the June 2030 Notes is payable semiannually in arrears on June 16 and December 16 of each year, commencing December 16, 2025. The June 2030 Notes are general unsecured obligations and rank pari passu, or equally in right of payment, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The Company may redeem some or all of the June 2030 Notes at any time, or from time to time, at the redemption price set forth under the terms of the Ninth Supplemental Indenture. 2031 Asset-Backed Notes On June 22, 2022, the Company completed a term debt securitization in connection with which an affiliate of the Company issued $150.0 million in aggregate principal amount of 4.950% interest-bearing asset-backed notes due on July 20, 2031 (the “2031 Asset-Backed Notes”). The 2031 Asset-Backed Notes were issued by Hercules Capital Funding Trust 2022-1 LLC (the “2022 Securitization Issuer”) pursuant to a note purchase agreement, dated as of June 22, 2022, by and among the Company, Hercules Capital Funding 2022-1 LLC, as trust depositor, the 2022 Securitization Issuer, and U.S. Bank Trust Company, N. A., as trustee, and are backed by a pool of senior loans made to certain portfolio companies of the Company and secured by certain assets of those portfolio companies and are to be serviced by the Company. Interest on the 2031 Asset-Backed Notes will be paid, to the extent of funds available. Under the terms of the 2031 Asset-Backed Notes, the Company is required to maintain a reserve cash balance, funded through proceeds from the sale of the 2031 Asset-Backed Notes and through interest and principal collections from the underlying securitized debt portfolio, which may be used to pay monthly interest and principal payments on the 2031 Asset-Backed Notes. The Company has segregated these funds and classified them as restricted cash. As of September 30, 2025 and December 31, 2024, there was approximately $21.1 million and $3.3 million, respectively, of funds segregated as restricted cash related to the 2031 Asset-Backed Notes. The reinvestment period for 2031 Asset-Backed Notes ended on July 20, 2024, and as a result all principal payments received from portfolio companies will no longer be eligible for reinvestment and will be utilized to pay down the outstanding principal amount. During the three and nine months ended September 30, 2025, the Company repaid $22.9 million and $30.8 million of principal, respectively, and accelerated recognition of $84 thousand and $120 thousand, respectively, of debt issuance costs associated with extinguishment of the debt. During the year ended December 31, 2024, the Company repaid $30.5 million of principal and accelerated recognition of $0.2 million of debt issuance costs associated with extinguishment of the debt. This is disclosed as “Loss on extinguishment of debt” in the Consolidated Statements of Operations. 2033 Notes On September 24, 2018, the Company issued $40.0 million in aggregate principal amount of 6.250% interest-bearing unsecured notes due October 30, 2033 (the “2033 Notes”), unless repurchased in accordance with the terms of the Sixth Supplemental Indenture to the Base Indenture, dated September 24, 2018 (the “Sixth Supplemental Indenture”). Interest on the 2033 Notes is payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year. The 2033 Notes trade on the NYSE under the symbol “HCXY.” The 2033 Notes are general unsecured obligations and rank pari passu, or equally in right of payment, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The Company may redeem some or all of the 2033 Notes at any time, or from time to time, at the redemption price set forth under the terms of the Sixth Supplemental Indenture after October 30, 2023. Credit Facilities As of September 30, 2025 and December 31, 2024, the Company has two available credit facilities, the MUFG Bank Facility and the SMBC Facility (together, the “Credit Facilities”). For the nine months ended September 30, 2025 and the year ended December 31, 2024, the weighted average interest rate was 5.68% and 7.63%, respectively, and the average debt outstanding under the Credit Facilities was $357.0 million and $338.0 million, respectively. MUFG Bank Facility On June 10, 2025, the Company entered into a fourth amended credit facility agreement (the “Fourth Amendment”), which amends the agreement dated as of January 13, 2023. The Company, through a special purpose wholly owned subsidiary, Hercules Funding IV LLC (“Hercules Funding IV”), as borrower, entered into the credit facility (the “MUFG Bank Facility”) with MUFG Bank Ltd. as the arranger and administrative agent, and the lenders party to the MUFG Bank Facility from time to time. The Fourth Amendment increased the lenders' commitments from $400.0 million to $440.0 million, which may be further increased via an accordion feature up to an aggregate $600.0 million, funded by existing or additional lenders and with the agreement of MUFG Bank and subject to other customary conditions. There can be no assurances that additional lenders will join the MUFG Bank Facility to increase available borrowings. The Fourth Amendment adjusted the interest rate per annum from SOFR plus 2.75% to SOFR plus an applicable margin adjustment which can range from 2.50% to 2.75% subject to certain conditions. The maturity date was amended from January 13, 2026, plus a twelve-month amortization period to June 10, 2029, unless sooner terminated in accordance with its terms. The MUFG Bank Facility is secured by all of the assets of Hercules Funding IV. The MUFG Bank Facility requires payment of a non-use fee at a rate based on average utilization rate during its term. The MUFG Bank Facility also includes financial and other covenants applicable to the Company and the Company’s subsidiaries, in addition to those applicable to Hercules Funding IV, including covenants relating to certain changes of control of Hercules Funding IV. Among other things, these covenants require the Company to maintain certain financial ratios, including a minimum interest coverage ratio and a minimum tangible net worth with respect to Hercules Funding IV. The MUFG Bank Facility provides for customary events of default, including with respect to payment defaults, breach of representations and covenants, servicer defaults, certain key person provisions, cross default provisions to certain other debt, lien and judgment limitations, and bankruptcy. SMBC Facility On November 26, 2024, the Company entered into a fifth amendment (the “Fifth Amendment”) to its revolving credit agreement, which amends the revolving credit agreement, dated as of November 9, 2021, with Sumitomo Mitsui Banking Corporation (the “SMBC Facility”), as administrative agent, and the lenders and issuing banks to the SMBC Facility. As of September 30, 2025, the SMBC Facility provides for borrowings in U.S. dollars and certain agreed upon foreign currencies of up to $300.0 million, from which the Company may access subject to certain conditions. The SMBC Facility contains an accordion feature, in which the Company can increase the credit line up to an aggregate of $500.0 million, funded by existing or additional lenders and with the agreement of SMBC Bank and subject to other customary conditions. Availability under the revolving SMBC Facility will terminate on November 24, 2028, and the outstanding loans under the SMBC Facility will mature on November 26, 2029. Borrowings under the SMBC Facility are subject to compliance with a borrowing base and an aggregate portfolio balance. The Company’s obligations under the SMBC Facility may in the future be guaranteed by certain of the Company’s subsidiaries and primarily secured by a first priority security interest (subject to certain exceptions) in only certain specified property and assets of the Company and the subsidiary guarantors thereunder. Interest under the revolving portion of the SMBC Facility is determined by the nature and denomination of the borrowing. Interest rates are determined by the appropriate benchmark rate (SOFR, EURIBOR, Prime, CORRA, or TIBOR) as applicable for the type of borrowing plus an applicable margin adjustment which can range from 1.0% to 2.0% per annum subject to certain conditions. In addition to interest, the SMBC Facility is subject to a non-usage fee of 0.375% per annum (based on the immediately preceding period’s average usage) on the unused portion of the commitment under the SMBC Facility during the revolving period. The Company is required to pay letter of credit participation fees and a fronting fee on the average daily amount of any lender’s exposure with respect to any letters of credit issued under the SMBC Facility. In connection with the Fifth Amendment, $25.0 million of the total available commitment under the revolver facility was converted into a term loan (the “SMBC Term Loan”). The SMBC Term loan is a SOFR based interest-bearing plus 2.0% spread loan and will mature on November 26, 2029, unless repurchased in accordance with the terms of the SMBC Facility. Interest on the SMBC Term Loan is payable monthly, quarterly, or semiannually based on the SOFR tenor. The SMBC Term Loan is general unsecured obligations and rank pari passu, or equally in right of payment, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The Company may redeem some of all of SMBC Facility at any time, or from time to time, at the redemption price set forth under the terms of SMBC Facility Indenture. On February 5, 2025, the Company entered into the Third Amendment to the SMBC Letter of Credit Facility Agreement (the "SMBC LC Facility"), which amends the SMBC LC Facility with Sumitomo Mitsui Banking Corporation, dated as of January 13, 2023. The SMBC LC Facility provides for a letter of credit facility with a final maturity date ending on February 5, 2028 and a commitment amount of $175.0 million as amended. Further, the SMBC LC Facility includes an accordion provision to increase the commitment up to $400.0 million, subject to certain conditions. The Company’s obligations under the SMBC LC Facility may in the future be guaranteed by certain of the Company’s subsidiaries and is primarily secured by a first priority security interest (subject to certain exceptions) in only certain specified property and assets of the Company and any subsidiary guarantors thereunder. The SMBC Facility contains customary events of default with customary cure and notice provisions, including, without limitation, nonpayment, misrepresentation of representations and warranties in a material respect, breach of covenant, cross-default and cross-acceleration to other indebtedness and bankruptcy. The SMBC Facility also includes financial and other covenants applicable to the Company and the Company’s subsidiaries, including covenants relating to minimum stockholders' equity, asset coverage ratios, and our status as a RIC.

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