S&P rates Goldman Sachs BDC convertibles BBB-

S&P said it assigned a BBB- rating on Goldman Sachs BDC Inc.'s proposed $100 million convertible senior unsecured notes due in April 2022.

The total issuance amount could go up to $115 million if the overallotment option is exercised, the agency said.

The company’s issuer credit rating is BBB- with a stable outlook.

The proceeds will be used to reduce the company’s existing outstanding balance on its senior secured revolving credit facility, S&P said.

Goldman Sachs BDC continues to maintain substantial cushion relative to the key thresholds for a downgrade, the agency said.

This transaction is viewed as a positive for the issuer credit rating because it reduces the company’s reliance on its revolving credit facility and diversifies its debt-funding sources, S&P said.

However, the agency said it still views Goldman as having a more concentrated funding profile than many rated business development company peers.

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