NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) currently maintains issuer and senior unsecured debt ratings of BBB+ with a stable outlook for Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or “the Company”). On June 22, 2016, HTGC announced a public offering of additional $69 million of 6.25% unsecured notes due in 2024 (the “Notes”). Pending the fulfillment of closing conditions, the sale is expected to close on June 27, 2016. The Notes will rank equally with existing and future unsecured notes issued by HTGC. KBRA’s current unsecured debt rating covers HTGC’s 7.00% Notes due April 2019, 7.00% Notes due September 2019 and 6.25% Notes due May 2024. The company aims to invest the net proceeds of the notes to fund investments in debt and equity securities and for other general corporate purposes.
HTGC is a specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broadly diversified variety of technology, life sciences, and sustainable and renewable technology industries. The Company sources its investments through its principal office located in Palo Alto, CA, as well as through its additional offices in Boston, MA, New York, NY, Washington, D.C., Santa Monica, CA., and Hartford, CT. Hercules is an internally managed, non-diversified closed-end investment company.
In September 2015, KBRA affirmed an issuer and senior unsecured debt rating of BBB+ with a stable outlook to HTGC. The ratings of Hercules reflects the company’s focus on senior secured debt, positive asset quality performance, and adequate leverage metrics. The rating is also supported by HTGC’s proven access to capital markets and their expertise in investing in venture-backed companies with strong growth potential as well as the quality of their credit risk management and monitoring. These strengths are counterbalanced by the potential risks related to Hercules’s significant exposure to illiquid investments and to potential event risk.
The ratings are assigned using KBRA’s Finance Company Rating Methodology, published April 1, 2013. The ratings and supporting rationale are available at www.kbra.com.
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