KBRA Assigns a Preliminary Rating to ICG US CLO 2019-1, Ltd.

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to one class of notes issued by ICG US CLO 2019-1, Ltd. (ICG 2019-1).

ICG 2019-1 is a cash flow collateralized loan obligation (CLO) managed by ICG Debt Advisors LLC (the collateral manager). The CLO will have a five-year reinvestment period and the legal final maturity is on Oct. 26, 2032. The rating reflects initial credit enhancement levels, excess spread, four levels of coverage tests including overcollateralization ratio and interest coverage tests, and an interest diversion test.

The collateral in ICG 2019-1 will mainly consist of broadly syndicated leveraged loans issued by corporate obligors diversified across sectors. The obligors in the portfolio have a K-WARF of 2284, which represents a weighted average portfolio assessment of approximately B. The total portfolio par amount is $400 million with expected exposures to over 170 obligors when the transaction is fully invested. The portfolio is over 54% ramped as of August 26, 2019 and the remainder will be acquired before the transaction’s effective date.

Established in 1999, ICG Debt Advisors LLC (“ICG”), has a $13.6 billion broadly syndicated credit platform, focused primarily on CLOs, syndicated loans, multi-asset credit and structured credit strategies. ICG invests across North America and Europe and has issued 11 U.S. CLOs since 2014, with approximately $4.5 billion in CLO assets under management.

The Class A-1A Notes have par subordination of 38.5% and 10% cushion on the senior overcollateralization ratio test. The rating on the Class A-1A Notes represents timely interest and ultimate principal.

KBRA analyzed the transaction using Global Structured Credit Rating Methodology published on August 7, 2018 and the Global Structured Finance Counterparty Methodology published on August 8, 2018.

The rating is based on information known to KBRA at the time of this publication.

Class

Initial Amount

Interest Rate

Par Subordination

Preliminary Rating

Class A-1A

$246,000,000

3mL + 1.38%

38.50%

AAA (sf)

To access ratings, reports and disclosures, click here.

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

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.

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Contacts

Analytical Contacts:

George Lyons, CFA, Senior Director
(646) 731-3314
glyons@kbra.com

Sean Malone, CFA, Director
(646) 731-2436
smalone@kbra.com

Kathy Song, CFA, Associate Director
(646) 731-1209
ksong@kbra.com

Steven Zheng, Analyst
(646) 731-3379
szheng@kbra.com

Eric Hudson, Managing Director
(646) 731-3320
ehudson@kbra.com

Contacts

Analytical Contacts:

George Lyons, CFA, Senior Director
(646) 731-3314
glyons@kbra.com

Sean Malone, CFA, Director
(646) 731-2436
smalone@kbra.com

Kathy Song, CFA, Associate Director
(646) 731-1209
ksong@kbra.com

Steven Zheng, Analyst
(646) 731-3379
szheng@kbra.com

Eric Hudson, Managing Director
(646) 731-3320
ehudson@kbra.com