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KBRA Assigns Preliminary Ratings to Atlas Senior Loan Fund XIV Ltd.Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes issued by Atlas Senior Loan Fund XIV, Ltd. (Atlas XIV). Atlas XIV is a cash flow collateralized loan obligation (CLO) managed by Crescent Capital Group LP (the collateral manager). The CLO will have a five-year reinvestment period and the legal final maturity is on July 20, 2032. The preliminary ratings reflect initial credit enhancement levels, four levels of coverage tests including par value and interest coverage tests, excess spread, and a reinvestment diversion test. The collateral in Atlas XIV will mainly consist of broadly syndicated leveraged loans issued by corporate obligors diversified across sectors. The obligors in the portfolio have a K-WARF of 2257, which represents a weighted average portfolio assessment of approximately B. The total portfolio par amount is $400.0 million with exposures to over 210 obligors. The portfolio is approximately 52.6% ramped as of May 20, 2019 with the remainder acquired before the transaction's effective date. Crescent, founded in 1991 and is headquartered in Los Angeles, California, is an independent credit firm with over 25 years' experience in below investment grade credit. The management team, led by Kimberly Frazier, Jonathan Insull, and Matthew Miller, has industry experience ranging from 13 to 31 years. The structured products platform launched in 1993 and focused mostly on multi-asset cash flow and market value/synthetic structures into the mid-2000s. Crescent's current strategy is focused on bank loans and cash flow CLOs, with approximately $4 billion in AUM across 9 outstanding CLO transaction as of December 2018. The Class A Notes have par subordination of 36% and 10% cushion on the senior overcollateralization test. The preliminary rating on the Class A Notes represent timely interest and ultimate principal. The Combination Notes will carry a principal only rating which represents ultimate payment of the initial principal amount by legal final maturity. The Combination Notes will hold the following components:
KBRA analyzed the transaction using Global Structured Credit Rating Methodology published on August 7, 2018. The preliminary rating is based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of a final rating that differs from the preliminary rating.
To access ratings, reports and disclosures, click here. Related Publications: (available at www.kbra.com)
CONNECT WITH KBRA 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/20190520005473/en/ |
