NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of debt (the “Debt”) issued by Elm 2018-2 Trust.
Elm 2018-2 Trust (the “Issuer” or “Elm 2018-2”) will issue the Class A-1 Senior Secured Revolving Floating Rate Senior Advances, the Class A-2 Senior Secured Fixed Rate Senior Notes and the Class B Fixed Rate Subordinated Notes (collectively, the “Debt”).
The Debt is secured by an initial pool (the “Initial Loans”) comprised primarily of:
| (1) | First lien term loans to life sciences companies (the “Life Sciences Loans”), | |
| (2) | First or second lien term loans to technology companies (the “Technology Term Loans”) and | |
| (3) | Fully funded pari passu participations in senior secured revolving loans to technology companies (the “Senior Revolving Technology Loans” and, collectively with the Technology Term Loans, the “Technology Loans”). |
The Initial Loans were originated by MidCap Financial Trust (the “Originator”) and will be serviced by MidCap Financial Services Capital Management, LLC (“MidCap Financial” or the “Servicer”). This transaction is the second ABS securitization for the Originator and Servicer, collectively referred to as “MidCap” or the “Company.”
Founded in 2008, MidCap is a middle market-focused, specialty finance firm that provides senior debt solutions to companies across all industries. The Company provides a broad array of products intended to finance growth and manage working capital. MidCap has focused on the direct origination of life sciences loans, technology loans, asset-backed loans, leveraged loans, real estate loans and lender finance loans.
KBRA analyzed the transaction using KBRA’s Global General Rating Methodology for Asset-Backed Securities, published on November 28, 2017.
For complete details on the analysis, please see KBRA’s pre-sale report, Elm 2018-2 Trust, which was published at www.kbra.com.
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)
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