NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by TruPS Financials Note Securitization 2017-2 (“TFINS 2017-2”).
This transaction is EJF Capital LLC’s (“EJF Capital”) fifth securitization originated since 2015. TruPS Financials Note Securitization 2017-2 Ltd (the “Issuer”) will issue Class A-1 Senior Secured Floating Rate Notes (the “Class A-1 Notes”), Class A-2 Senior Secured Fixed-Floating Rate Notes (“Class A-2 Notes”), and Class B Mezzanine Deferrable Floating Rate Notes (“Class B Notes”) totaling $285.9 million of rated notes.
EJF CDO Manager LLC, a Capitalized Majority Owned Affiliate (“C-MOA”) of EJF Capital, is the collateral manager. Proceeds of the Notes will be used to purchase 60 securities from 52 obligors consisting of bank subordinated notes, bank trust preferred securities, insurance surplus notes, insurance trust preferred securities, and an insurance senior note totaling $353.01 million in notional balance.
The transaction has 32.0% hard subordination for the Class A Notes and 19.0% for the Class B Notes. Credit enhancement consists of excess spread, overcollateralization, subordination, a turbo payment amortizing the Class A Notes beginning in September 2025, and a Class A Interest Reserve Account.
EJF Capital is headquartered in Arlington, VA. Founded in 2005 by Manny Friedman and Neal Wilson, it has more than $4.9 billion under management, and is a SEC registered investment advisor. EJF focuses on investment opportunities in financial institutions which may include banks, insurance companies, REITs and specialty finance companies. The firm has 68 employees with an investment team of 30 professionals. EJF CDO Manager LLC serves as a CDO manager on legacy ABS CDOs.
KBRA analyzed the transaction using the General Rating Methodology for Asset-Backed Securities published on July 30, 2012 and incorporated the Global Insurer & Insurance Holding Company Rating Methodology and Global Bank and Bank Holding Company Rating Methodology for analyzing the underlying collateral obligations.
For complete details on the analysis, please see KBRA’s Pre-Sale Report, TruPS Financials Note Securitization 2017-2 Pre-Sale Report, which was published today at www.kbra.com.
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 final rating that differ from the preliminary rating.
| Class | Preliminary Rating | Initial Principal Amount | ||||||
| Class A-1 Notes | AA- (sf) | $205,000,000 | ||||||
| Class A-2 Notes | AA- (sf) | $35,000,000 | ||||||
| Class B Notes | BB- (sf) | $45,900,000 | ||||||
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 TruPS Financials Note Securitization 2017-2 Representations and Warranties Disclosure.
Related Publications: (available at www.kbra.com)
- General Rating Methodology for Asset-Backed Securities
- Global Insurer & Insurance Holding Company Rating Methodology
- Global Bank and Bank Holding Company Rating Methodology
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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).
