KBRA Assigns Preliminary Rating to Golub Capital Partners ABS Funding 2019-1, Ltd.

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to one class of notes issued by Golub Capital Partners ABS Funding 2019-1, Ltd. (GCPAF 2019-1).

GCPAF 2019-1 is a $340.8 million securitization managed by GC Investment Management LLC (the collateral manager). The securitization consists of $208.57 million of Class A fixed-rate notes and $133.35 million subordinated notes and will have a two-year reinvestment period. The rating reflects initial credit enhancement levels, excess spread, and structural features.

The collateral in GCPAF 2019-1 mainly consists of middle market leveraged loans and late stage loans (LSLs). The obligors in the portfolio have a K-WARF of 3856, which represents a weighted average portfolio assessment between B- and CCC+. The portfolio contains exposures to 37 obligors with approximately 66% of the par exposure to the LSLs. The obligors related to the LSLs are typically software and technology services companies and are often younger in their lifecycles and may be growing more rapidly than a typical middle market lending borrower.

GC Investment Management LLC is an investment adviser established in 2010 and affiliate of GC Advisors LLC (collectively, with these affiliates and other funds managed by them and their affiliates “Golub Capital”). The collateral manager will leverage the Golub Capital platform, including its investment professionals and other resources. Founded in 1994, Golub Capital has over $30 billion in capital under management as of July 1, 2019 with $25 billion in middle market direct lending, $5 billion in broadly syndicated leveraged loans, and has originated $2.5 billion of LSLs.

KBRA analyzed the transaction using Global Structured Credit Rating Methodology published on August 7, 2018 and the Global Structured Finance Counterparty Methodology published on August 8, 2018.

The rating is based on information known to KBRA at the time of this publication.

Class

Initial Amount

Interest Rate

Par Subordination

Preliminary

Rating

Class A-1

$208,570,000

4.75%

39.00%

A (sf)

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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) 731-3314

glyons@kbra.com

Sean Malone, CFA, Director

(646) 731-2436

smalone@kbra.com

Kathy Song, CFA, Associate Director

(646) 731-1209

ksong@kbra.com

Eric Hudson, Managing Director

(646) 731-3320

ehudson@kbra.com

Business Development Contact:

Jason Lilien, Managing Director

(646) 731-2442

jlilien@kbra.com

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