KBRA Assigns Ratings to Stone Point Credit MM CLO 2025-1, LLC
3 Feb 2025 | New York
KBRA assigns ratings to six classes of notes issued by Stone Point Credit MM CLO 2025-1, LLC ("Stone Point 2025-1"), delayed-draw middle market collateralized loan obligation (“CLO”) managed by Stone Point Credit Adviser LLC (“Stone Point Credit” or the “collateral manager”).
Stone Point 2025-1 features a five-year reinvestment period and the legal final maturity is on April 15, 2037. The ratings reflect expected credit enhancement levels, excess spread, and coverage tests including overcollateralization ratio and interest coverage tests.
The Notes will initially be funded reverse sequentially after the closing date, starting with the Subordinated Notes, and will be subject to minimum diversity thresholds. On the Conversion Date, the collateral manager will direct the conversion of a portion of the drawn note balances into a principal amount of each class, such that the aggregate drawn amount conforms to the Target Capital Ratio. Thereafter, drawings will be made on a pro-rata basis for each Class of Notes up to the maximum commitment amounts. The Conversion Date can occur at any time during the reinvestment period, subject to the satisfaction of conditions for diversity, collateral quality, and ramp percentage.
Stone Point Credit is the credit-investing platform of Stone Point Capital, a sector-focused private equity and credit firm which was established over 25 years ago. Stone Point Credit manages private and liquid credit strategies, with a focus on investments in financial services, business services, software and technology, and healthcare services sectors, and will act as the collateral manager for this transaction. As of September 30, 2024, the Stone Point team manages over $9 billion in assets across private and liquid credit strategies.
The ratings on the Class A and B Notes consider the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the ratings on the Class C, D, E, and F Notes consider the ultimate payment of interest and principal by the applicable stated maturity date.
To access ratings and relevant documents, click here.
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