S&P rates Hercules Capital notes BBB-

S&P said it assigned its BBB- issue level rating to Hercules Capital Inc.'s offering of $75 million of 5.25% notes due 2025.

The issuer credit rating of BBB- and negative outlook are unchanged.

The agency said it expects the company to use the proceeds for new investment activities, to pay down existing debt and for general corporate purposes.

“As with other business development companies, we are uncertain whether Hercules will decide to pursue higher leverage as allowed by the Small Business Credit Availability Act,” S&P said in a news release.

“We could lower our ratings quickly on Hercules if it announces an intention to increase leverage.”

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