KBRA Issues Rating Agency Confirmation Related to an Upsize of the Notes Issued by NPC SIP 2024-1 Ltd.
27 Mar 2025 | New York
KBRA hereby confirms that the execution of the upsize of the Notes of NPC SIP 2024-1 Ltd. (the “Issuer”) in and of itself will not result in a downgrade, qualification or withdrawal of KBRA’s current rating issued in connection with the outstanding Senior Notes initially issued on November 22, 2024. The initial request for Rating Agency Confirmation (RAC) was received on February 4, 2025. Following KBRA’s no downgrade confirmation, the Issuer upsized the Senior Notes from the original $366.0 million to $643.5 million. The unrated Liquidity Facility and Subordinated Notes were also upsized concurrently with the Senior Notes, increasing from $43.0 million to $75.0 million and from $61.0 million to $107.25 million, respectively. As a result, the aggregate size of the Senior and Subordinated Notes rose from $427.0 million to $750.75 million.
As part of the upsize, the Issuer increased its commitment proportionally to the Private Assets. Furthermore, a proportion of the upsize was used to acquire additional Principal Assets with the same maturity as the existing Principal Assets. As a result of a change in market rates between the original issuance and the upsize, the proportion of the upsized issuance amount that was required to be allocated to the Principal Assets has slightly increased relative to the original issuance (23.7% at issuance compared to 25.2% as of the upsize) which results in a slightly lower cash balance available to the Issuer to allocate to the Liquid Assets and to meet capital calls to the Private Assets. KBRA assessed updated cash flow projections which factor in the difference in the amount of available liquidity following the acquisition of the Principal Assets. Overall, the upsize has relatively limited impact to the structure’s break-even IRRs, which remains at 9.4%, which is calculated assuming the performance triggers (IRR Covenant and ICR Covenant) are not applicable. The upsizing was confirmed as executed on the date of this release.
To access ratings and relevant documents, click here.