NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two note classes of Harley Marine Financing LLC, Series 2018-1. The notes are an asset-backed securitization collateralized by a portfolio of marine vessels and their respective leases.
This is the first transaction issued out of Harley Marine Financing LLC (“Issuer”). The portfolio consists of 122 owned vessels, with an aggregate fair market value (“FMV”) of $505.1 million. The securitization is also entitled to all revenue from vessels Harley Marine (the “Company”) leases-in for use. The majority of the Company’s customers are high quality credit obligors with long historical relationships. The transaction is structured with 3.0% per annum amortization on the Class A-2 notes until the anticipated repayment date in 4 years. The Class B notes amortize at 25% per annum. The structure includes Interest Coverage Ratio triggers which set partial amortization, rapid amortization, and manager termination events. Other credit enhancement features include leverage tests on FMV, reserve accounts, and trailing twelve month customer collections test.
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.
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Preliminary Ratings Assigned: Harley Marine Financing LLC, Series 2018-1 |
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| Series 2018-1 | Preliminary Rating | Initial Principal Balance | ||
| Class A-2 | BBB (sf) | $405,000,000 | ||
| Class B | BB (sf) | $50,000,000 | ||
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 available here.
Related Publications: (available at www.kbra.com)
- ABS: Harley Marine Financing LLC, Series 2018-1 Pre-Sale Report
- Global General Rating Methodology for Asset-Backed Securities
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and 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.
