KBRA Assigns a Rating to BNP Paribas' Participation in a Secured Revolving Credit Tranche A Facility to Lone Star Fund XI, L.P.
19 Jan 2024 | London
KBRA UK (KBRA) assigns a rating to BNP Paribas' ("BNPP") participation in a Secured Revolving Credit Tranche A Facility (the "Facility") to Lone Star Fund XI, L.P. ("Fund XI" or the "Fund"). The Facility is provided by a consortium of lenders including BNPP. KBRA has assigned an A rating and stable outlook to BNPP's $57.3 million commitment to the $755.3 million Tranche A Facility.
The Lenders have a first priority security interest in the uncalled capital commitments of the Fund, including security over the right of the general partner to make capital calls. The Lenders also benefit from bank account security over the capital call accounts. The Facility agreement includes two tranches, a Tranche A Facility and Tranche B Facility. Tranche A is senior to Tranche B, including relating to rights of payment, with the proceeds of capital calls made by the Agent to be used first to repay Tranche A. Additionally, Tranche B can only be drawn once Tranche A has been fully drawn.
Established in 1995, Lone Star is a private equity firm that has organized 23 funds with aggregate capital commitments totalling approximately $87.0 billion. Lone Star has a global footprint with 11 international offices across North America, Europe and Asia. Fund XI is a 2019 vintage fund that raised an aggregate of $8,100 million in capital commitments from approximately 139 Limited Partners. The Fund will follow a similar strategy to its predecessor funds to invest opportunistically across a variety of investment assets but generally seek opportunistic investments in financial and other investment assets, including single-family residential debt and corporate and consumer debt products as well as investments in financially oriented and other operating companies.
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