KBRA Publishes Ratings for Hildene Holding Company, LLC and Hildene Capital Management, LLC

NEW YORK--(BUSINESS WIRE)--KBRA publishes issuer ratings of BBB and senior secured debt ratings of A- for Hildene Holding Company, LLC and Hildene Capital Management, LLC (“Hildene”, “HCM”, or “the firm”). The Outlook for the ratings is Stable. On June 9, 2026, these ratings were assigned on an unpublished basis.

The ratings are supported by Hildene’s growing scale and platform diversification across multiple segments of structured credit, asset-based finance, and insurance, underpinned by management’s expertise in complex securitized products and structured finance investing. Collectively, these factors have contributed to Hildene’s established market position while the pending acquisition of SILAC, Inc., parent of SILAC Insurance Company (“SILAC”), a leading provider of fixed and fixed indexed annuity products, will further diversify AUM toward longer-duration assets. Hildene is exposed to inherent risks related to its concentration in structured credit, including market and credit spread volatility, sector specific downturns, as well as periods of reduced liquidity and heightened valuation volatility during stressed market environments. These risks are partially mitigated by Hildene’s longstanding expertise in structured credit underwriting and experience navigating multiple market and credit cycles. Key person risk exists with the firm’s co-CIOs, in part, counterbalanced by the depth of the broader senior team. Management fees are primarily earned based on book value and NAV, which may fluctuate with market conditions. Hildene also earns shared services fees while performance fees offer upside. Revenue diversification is improving as HCM expands into insurance. A flexible cost base augments cash flow resiliency during stressed conditions. A meaningful portion of AUM is in open-ended fund structures subject to standard redemption risk. Redemption risk appears manageable and limited as Hildene maintains various liquidity management provisions designed to mitigate outflows. HCM and Hildene Holding Company, LLC, together as co-borrowers, are seeking a $150 million senior secured delayed draw credit facility with a three-year maturity and two 12-month extension options. Approximately $100 million will be used to fund a portion of the ~$550 million SILAC acquisition. The remaining balance on the facility is intended to be used for general corporate purposes. Pro forma debt/EBITDA is expected to decline over time based on management projections and to be managed at levels in line with rating assumptions. The senior secured facility benefits from recourse to management fee income and the acquired annuity platform, which altogether provide >2x coverage of the facility and meaningful overcollateralization. Covenant protections include limitations on additional indebtedness and restrictions on distributions following an event of default, among other credit enhancing features that support a two-notch uplift of the facility rating from the issuer rating.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• Financial Institutions: Asset Manager Global Rating Methodology
• Corporates & Financial Institutions: Corporate Instruments / Corporate-Linked Obligations Notching Global 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.

Doc ID: 1016662