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KBRA Assigns BBB Rating to Business Development Corporation of America’s $100 million Senior Unsecured 4.85% Notes Due 2024

December 3, 2019 GMT

NEW YORK--(BUSINESS WIRE)--Dec 3, 2019--

Kroll Bond Rating Agency (KBRA) assigns a BBB rating with a Stable Outlook to Business Development Corporation of America’s (“BDCA” or “the Company”) $100 million senior unsecured 4.85% notes due 2024 (“the Notes”). BDCA expects to use the proceeds to paydown a portion of its outstanding bank loans and for general corporate purposes. The Notes rank equally with existing and future senior unsecured notes issued by BDCA.

Incorporated in 2010, BDCA is a New York-based, externally managed, non-traded business development company (BDC) operating under the Investment Company Act of 1940. The Company was established to provide capital, primarily in the form of senior secured loans to middle market companies while providing investors a preservation of capital and attractive yields. BDCA is externally managed by BDCA Adviser, LLC (the “Adviser”), a subsidiary of Benefit Street Partners (BSP), a registered investment advisor with the SEC and an affiliate of Franklin Templeton (FT).

The BBB ratings reflect BDCA’s solid and well diversified $2.6 billion investment portfolio consisting mainly of senior secured debt (81.6%) to 232 portfolio companies across approximately 20 industry sectors, a sound external manager, BSP Advisor, a subsidiary of Franklin Templeton (FT), which has a sizeable fixed income asset management platform of $261 billion and a shrinking CLO portfolio that comprised 4.28% of total investments as of September 30, 2019. Further supporting the ratings are the company’s appropriate leverage at 0.77 times and ample unencumbered assets in excess of $1 billion as of September 30, 2019. The Company has not sought unitholder approval to increase its leverage as permissible under the SBCAA which was enacted in March 2018. These strengths are counterbalanced by the potential risks related to BDCA’s significant exposure to illiquid investments and limitations in accessing the equity markets.

The ratings are assigned using KBRA’s Global Finance Company Rating Methodology, published November 28, 2017.

Related Publications: (available at www.kbra.com )

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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. KBRA is also 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191203006096/en/

CONTACT: Analytical:Teri Seelig, Director

(646) 731- 2386

tseelig@kbra.comBoris Alishayev, Director

(646) 731-2484

balishayev@kbra.comMarjan Riggi, Senior Managing Director

(646) 731-2354

mriggi@kbra.comBusiness Development:Nish Kumar, Senior Director

(646) 731-3372

nkumar@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2019.

PUB: 12/03/2019 06:00 PM/DISC: 12/03/2019 06:00 PM

http://www.businesswire.com/news/home/20191203006096/en