KBRA Assigns Preliminary Ratings to Second Refinancing of Hildene TruPS Securitization 3, Ltd.
17 Jun 2025 | New York
KBRA assigns preliminary ratings to six classes of refinancing notes issued by Hildene TruPS Securitization 3, Ltd. (HITR3), a securitization backed by a portfolio of bank and insurance TruPS CDO assets. The transaction originally closed in June 2020 as Hildene TruPS Securitization 2020-3 Ltd and had an initial refinancing in August 2021. This transaction will include an upsize of $43.7 million of new assets and resets the terms of the securitization including the stated maturity, non-call period, payment date when Turbo Payment Percentage is applied, portfolio and note notional balances and note interest rates.
It is expected to have a performing collateral par value of $363.1 million from 64 obligors (72 assets) and total liabilities of $270.7 million. The transaction is static although Hildene Structured Advisors, LLC (HSA), the named collateral manager, can direct a limited amount of sales. HSA is a relying advisor to Hildene Capital Management, LLC (together with its affiliates, Hildene).
The securitization is expected to consist of $176.4 million Class A1-RR Notes, $30.0 million Class A2-FR Notes, $51.4 million Class A2-NR Notes, $31.1 million Class B-RR Notes, $13.7 million Class C-RR Notes, $24.7 million Class D-RR Notes, and $34.7 million of Subordinated Notes. The ratings reflect current credit enhancement levels, excess spread, and structural features.
The Classes A1-RR, A2-NR, A2-FR, B-RR, C-RR, and D-RR Notes are expected to have par subs of 51.7%, 29.5%, 29.5%, 21.0%, 17.3%, and 10.5% respectively. The current portfolio has a K-WARF of 432, which represents a weighted average portfolio assessment between BBB- and BBB-.
Kroll Bond Rating Agency's (KBRA) preliminary ratings on Class A1-RR, A2-NR and A2-FR reflects KBRA’s opinion regarding the likelihood of timely payment of interest and ultimate repayment of principal. While the preliminary rating assigned to the Class B-RR, C-RR and D-RR reflects KBRA’s opinion regarding the likelihood of ultimate payment of interest and principal.
Note: This rating action press release was updated on June 17, 2025 to correctly identify the manager for the transaction.
To access ratings and relevant documents, click here.
Click here to view the report.