S&P gives TCP Capital notes BBB-

S&P said it assigned its BBB- debt rating to TCP Capital Corp.'s proposed senior unsecured notes due in August 2022. The issuance is expected to be $125 million.

The agency’s issuer credit rating on TCP Capital is BBB- with a stable outlook.

The company is planning to use the net proceeds from the offering to repay debt and for general corporate purposes.

S&P expects the company to operate with debt to adjusted total equity of less than 1x over the next 18-24 months. As of June 30, the company's total debt to ATE was 0.66x, and debt to equity (excluding the small business administration debentures) was 0.58x.

The agency said its ratings on the company reflect the company's conservative leverage, focus largely on senior secured investments, and relatively well-diversified portfolio. However, the company is one of the smaller business development companies S&P rates, and its funding is less diversified than larger business development companies.

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