KBRA Affirms Ratings for VCP RRL ABS III, LLC
18 Mar 2025 | New York
KBRA affirms the ratings of the Class A, Class B, Class C, and Class D Notes issued by VCP RRL ABS III, LLC (“VCP III”). VCP III is a $500.0 million securitization originated by Vista Credit Partners, LLC, an affiliate of Vista Equity Partners Management LLC. The transaction originally closed in March 2024. The maximum advance rate is 55% for the Class A Notes, 65% for the Class B Notes, 75% for the Class C Notes, and 80% for the Class D Notes in aggregate.
The collateral in VCP III currently consists of recurring revenue loans and middle market leveraged loans issued by corporate obligors diversified across sectors. As of the January 31, 2025, trustee report, the current portfolio has exposure to 33 obligors, the pool balance of the collateral obligations is $452.1 million and there is a principal cash balance of $50.1 million, bringing the adjusted pool balance to $502.2 million. The obligors in the portfolio have a K-WARF of 3667, which represents a weighted average assessment of approximately B-/CCC+. There are no defaulted, discount, or delinquent obligations in the portfolio. Since closing, the par subordinations have increased for each class of Notes. The transaction is in compliance with the borrowing base conditions and all portfolio profile tests. The transaction exited its reinvestment period on December 31, 2024.
The surveillance analysis used information through the January 2025 trustee report date. All Notes have received timely interest distributions since the transaction has closed.
KBRA’s ratings on the Class A and Class B Notes consider timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the ratings on the Class C and Class D Notes consider the ultimate payment of interest and principal by the applicable stated maturity date.
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