KBRA Assigns Preliminary Ratings for CLI Funding VI LLC

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings on seven class of notes issued by CLI Funding VI LLC.

The transaction represents the 15th securitization and the first rated by KBRA. The CLI Funding VI, LLC Master Trust is a special purpose entity and wholly owned subsidiary of SeaCube that was established to issue multiple series of notes. The Trust currently has three series of notes outstanding, Series 2016-1, Series 2017-1 and Series 2018-1.

The securitization is collateralized by a portfolio of 244,957 containers, with a net book value (“NBV”) of $1,049.5 million, and their respective leases. The fleet is comprised of 20.7% refrigerated units (“reefers”) by units, 76.2% dry container boxes by units and 3.1% special containers by units. As reefers cost approximately $12,000-$15,000 versus approximately $1,900 for standard dry container boxes, the portfolio based on the NBV is 59.1% reefers and 36.3% dry boxes.

All series of notes have the same amortization profile. Principal amortization is paid sequentially to the Class A notes and then the Class B notes, based on a minimum amortization (fifteen-year amortization), followed by scheduled principal (ten-year amortization) and then any supplemental principal. Supplemental principal is paid when the outstanding principal balance of a respective class is greater than its asset base. The series asset base is calculated by multiplying the aggregate asset value of the containers by the advance rate and then by the series asset allocation. All series also include early amortization events whereby the senior class receives all funds after interest is paid on both classes. Series specific early amortization events include events of default, interest coverage ratio being less than 2.0x for four consecutive months, and the weighted average age of the collateral pool exceeding 9 years. The current fleet is relatively young with a weighted average age of 3.0 years.

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.

Series/Class     Preliminary Rating     Original Balance     Outstanding Balance
2016-1 Class A     A (sf)     $140,100,000     $71,976,000
2017-1 Class A     A (sf)     $235,000,000     $184,218,975
2017-1 Class B     BBB (sf)     $13,700,000     $10,897,205
2018-1 Class A     A (sf)     $361,700,000     $321,187,451
2018-1 Class B     BBB (sf)     $17,900,000     $15,895,094
2019-1 Class A     A (sf)     $285,900,000     $285,900,000
2019-1 Class B     BBB (sf)     $14,100,000     $14,100,000

To access ratings, reports and disclosures, click here.

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

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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:

John Lampasona, Director
(646) 731-2318
jlampasona@kbra.com

Zara Shirazi, Director
(646) 731-3326
zshirazi@kbra.com

Adam DeJong, Associate
(646) 731-2476
adejong@kbra.com

Contacts

Analytical:

John Lampasona, Director
(646) 731-2318
jlampasona@kbra.com

Zara Shirazi, Director
(646) 731-3326
zshirazi@kbra.com

Adam DeJong, Associate
(646) 731-2476
adejong@kbra.com