Kroll Bond Rating Agency Assigns Preliminary Ratings to Four Seas L.P.

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes issued by Four Seas L.P.

Egon Holdings S.A., which together with its subsidiaries and Emby International Inc. conduct business as “Diarough” or the “Diarough Group”. The Diarough Group was founded in 1975 and is a diamantaire, involved in the purchase and sale of rough and polished diamonds. It is currently indirectly owned and controlled by members of the Parikh family. This is the company’s first securitization issued under rule 144A. Diarough completed a private inventory securitization in 2007 that was subsequently refinanced in 2012.

The collateral for the transaction primarily consists of Diarough’s rough and polished diamond inventory, as well as outstanding receivables. The transaction features a dynamic weekly borrowing base to ensure that rough and polished diamonds, as well as outstanding accounts receivable provide sufficient collateral coverage to noteholders. The borrowing base includes limitations on diamond type, weight, color, cut and clarity as well as jurisdictional limitations on where the inventory is maintained.

KBRA analyzed the transaction using the General Rating Methodology for Asset-Backed Securities published on July 30, 2012.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, Four Seas L.P., which was published today at www.kbra.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

         
Class of Notes   Preliminary KBRA Rating   Initial Principal Amount*
A-1   A (sf)   $75,000,000
A-2   A (sf)   $75,000,000

*Note classes will be sized to demand.

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled ABS: Four Seas L.P. Representations and Warranties Disclosure.

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

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency
Analytical:
Patrick McShane, 646-731-2376
Senior Director
pmcshane@kbra.com
or
Lenny Giltman, 646-731-2378
Managing Director
lgiltman@kbra.com
or
Anthony Nocera, 646-731-2350
Senior Managing Director
anocera@kbra.com
or
Shi Shen, 646-731-2480
Senior Analyst
sshen@kbra.com

Contacts

Kroll Bond Rating Agency
Analytical:
Patrick McShane, 646-731-2376
Senior Director
pmcshane@kbra.com
or
Lenny Giltman, 646-731-2378
Managing Director
lgiltman@kbra.com
or
Anthony Nocera, 646-731-2350
Senior Managing Director
anocera@kbra.com
or
Shi Shen, 646-731-2480
Senior Analyst
sshen@kbra.com