Kroll Bond Rating Agency (KBRA) assigned a rating of BBB+ with a Stable Outlook to Hercules Capital, Inc.'s (NYSE: HTGC) $250 million 4.75% convertible unsecured notes due September 2028, announced on March 6, 2025. This rating reflects the company's strong financial profile and operational history.
The rating is supported by Hercules Capital's diversified $3.66 billion investment portfolio, which includes 118 portfolio companies with a focus on senior secured first lien venture debt investments (86.9%) in technology and life sciences sectors. KBRA also noted the company's solid 20-year operating history, including performance during the global financial crisis.
Furthermore, the rating acknowledges Hercules Capital's proven access to capital markets, diversified funding mix, and a high proportion of unsecured debt to total debt outstanding (70.9% as of December 31, 2024). These factors provide solid protection for noteholders and enhance the company's financial stability.
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