KBRA Assigns Preliminary Ratings to Atlas Senior Loan Fund XIV Ltd.

NEW YORK–(BUSINESS WIRE)–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:


Class


 


 


 


 


Notional Amount of Component


Class C


 


 


 


 


$17,400,000


Class D


 


 


 


 


$1,100,000


Subordinated Notes


 


 


 


 


$6,500,000


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.


Class


 


 


Preliminary Rating


 


 


Initial Principal Amount


 


 


Certificate Type


Class A


 


 


AAA (sf)


 


 


$256,000,000


 


 


Principal and Interest


Combination Notes


 


 


A (sf)


 


 


$23,863,040


 


 


Principal Only


To access ratings, reports and disclosures, click here.


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


KBRA’s
Structured Credit 101: Collateralized Loan Obligations


KBRA’s
Structured Credit 401: Primer on Combination Notes


Global
Structured Credit Rating Methodology


Par
Wars: Attack on the Loans


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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.


Contacts

Analytical Contacts:George
Lyons, CFA, Senior Director(646) 731-3314glyons@kbra.com
Sean
Malone, CFA, Director(646) 731-2436smalone@kbra.com
Steven
Zheng, Analyst(646) 731-3379szheng@kbra.com
Eric
Hudson, Managing Director(646) 731-3320ehudson@kbra.com