NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to one class of notes issued by Hercules Capital Funding Trust 2018-1.
Hercules Capital Funding Trust 2018-1 (the “Issuer” or “Hercules 2018-1”) will issue the Series 2018-1 Fixed Rate Senior Notes (the “Notes”). The Notes expect to receive payments from an initial pool of first and second lien loans (and participations therein) made to life sciences companies (the “Life Sciences Loans”) and technology companies (the “Technology Loans” and, together with the Life Sciences Loans, the “Initial Loans”) and secured by certain assets of those companies.
The Initial Loans were originated or acquired by Hercules Capital, Inc. (the “Originator” or “Seller”) who will also act as servicer (the “Servicer”) for the transaction. This is the third term securitization of assets managed by Hercules Capital, Inc. (“Hercules” or the “Company”) and the second securitization rated by KBRA. KBRA notes that the Company will be retaining the equity in the transaction.
Hercules is a business development company (“BDC”) that specializes in providing senior secured loans to high-growth, venture capital-backed companies in technology, life sciences and sustainable and renewable technology industries at all stages of development. Hercules is an internally managed, non-diversified closed-end investment company that was founded in 2003 and began investment operations in 2004.
As of September 30, 2018, the composition of the initial loans (the “Initial Pool”) will consist of 36 loans to 38 obligors with an aggregate outstanding balance of approximately $285.8 million (the “Initial Pool Balance”). The exposures to Life Sciences Loans and Technology Loans will be approximately 62.9% and 37.1% of the Initial Pool Balance, respectively.
KBRA analyzed the transaction using KBRA’s Global General Rating Methodology for Asset-Backed Securities, published on November 28, 2017.
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- Hercules Capital Funding Trust 2018-1 Pre-Sale Report
- Global General Rating Methodology for Asset-Backed Securities
CONNECT WITH KBRA
Twitter
LinkedIn
Download
the iOS App
YouTube
About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
