KBRA Assigns Preliminary Ratings to Golub Capital Partners ABS Funding 2025-1

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to two classes of debt issued by Golub Capital Partners ABS Funding 2025-1 ("GCPAF 2025-1"), a securitization backed by a portfolio of recurring revenue and middle market corporate loans.

GCPAF 2025-1 is a loan securitization managed by GC Investment Management LLC (“GCIM” or the “Collateral Manager”), an investment adviser and affiliate of GC Advisors LLC (collectively, with these affiliates and other funds managed by them and their affiliates “Golub Capital”). The securitization consists of $292.5 million Class A notes, $49.5 million Class B notes (collectively the “Notes”), and $108.0 million Subordinated Notes. The notes will be collateralized by a $450.0 million portfolio of recurring revenue loans (“RRLs”) and middle market loans (“MMLs”). The transaction is a refinancing and extension of Golub Capital Partners ABS Funding 2024-1, which originally closed in March 2024. The issuer’s name will also be changed upon the execution of the transaction. On the closing date, the existing notes will be repaid from proceeds of the replacement notes. The refinanced transaction will have a two-year reinvestment period and a 1.5-year non-call period. The stated maturity will also be extended by two years, maturing in April 2036.

The rated notes benefit from internal credit enhancement through subordination, borrowing base, and excess spread. The Class A Notes and B Notes have a 65.0% and 76.0% advance rate respectively and are expected to receive timely interest payments and ultimate principal payments under KBRA’s rating scenarios. KBRA determined a credit assessment for each asset in the initial portfolio. At closing, the portfolio is expected to have a K-WARF of 3807, which equates to a weighted average assessment around B-/CCC+. The overall credit quality of RRLs, which account for 59.3% of the portfolio, is generally lower than that of traditional MMLs.

Kroll Bond Rating Agency’s (KBRA) ratings on the Class A and Class B Notes consider the timely payment of interest and ultimate payment of principal by the applicable stated maturity date.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• Structured Credit: Structured Credit Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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