KBRA Affirms Ratings for VCP RRL ABS II, LLC
26 Mar 2024 | New York
KBRA affirms the ratings of the Class A-1, Class A-2, Class A-2-A, Class B, and Class B-A Notes issued by VCP RRL ABS II, LLC (“VCP II”). VCP II is a $575.8 million securitization originated by Vista Credit Partners, LLC, an affiliate of Vista Equity Partners Management LLC. The transaction originally closed in July 2022 and later issued $112 million of additional notes across the A-2, Class B, and Class C Notes in March 2023. The maximum advance rate is 56% for the Class A Notes and 67% for the Class B Notes in aggregate.
The collateral in VCP II currently consists of recurring revenue loans and middle market leveraged loans issued by corporate obligors diversified across sectors. As of the January 31, 2024 trustee report, the current portfolio has exposure to 39 obligors, the pool balance of the collateral obligations is $564.8 million and there is a principal proceeds balance of $10.9 million, bringing the adjusted pool balance to $575.8 million. The obligors in the portfolio have a K-WARF of 3875, which represents a weighted average assessment of approximately B-/CCC+. There are no defaulted, discount, credit risk, or delinquent obligations in the portfolio. Since closing, the par subordinations have increased for the Class A-2A, Class B, and Class C Notes. The transaction is in compliance with the borrowing base condition and all portfolio tests. There is approximately 0.30 years remaining in the reinvestment period.
The surveillance analysis used information from the trustee report through the January 2024 trustee report date. All Notes have received timely interest distributions since the transaction has closed.
To access rating and relevant documents, click here.
Click here to view the report.