It was recently reported that Goldman Sachs BDC lowered its fair value (FV) mark on Khoros, LLC’s (Khoros, formerly known as Lithium Technologies, LLC) first lien loan to 50, from 92.5. This markdown was preceded by earlier action from Sixth Street Specialty Lending Corp, which similarly lowered the FV on the loan to 76.8, from 91.3.1 As of their Q2 reporting date, all public business development companies (BDC) that held the Khoros loan have significantly reduced their marks on the loan, and most now report the loan as nonaccrual in their quarterly disclosures (see Appendix A). The KBRA-rated transactions that have exposure to Khoros’ first lien debt include three rated BDCs and two private funds transactions. Khoros’ loan had also been present in two recurring revenue loan structured credit transactions, all of which sold their positions before the end of Q2 2024.
The firm was taken private in 2017 and was then known as Lithium Technologies, LLC,…