Despite widespread media coverage, KBRA notes that private credit’s exposure to First Brands Group LLC is minimal. Our analysis also indicates that none of the company’s nearly $6 billion in broadly syndicated loans (BSL) were originated by any private credit direct lending platforms.
In addition to its term loans, the company’s bankruptcy petition revealed a further $2.3 billion in off-balance sheet obligations, nearly $600 million in asset-based loans from a bank, and over $800 million in supply chain financing owed to 30 unsecured creditors—primarily trade and commercial finance companies, banks, hedge funds, and other operating businesses (see Appendix for a capital structure breakdown). Overall, private credit firms had only limited exposure across the company’s more than $9 billion in debt.
Private Credit’s Minimal Exposure
The only KBRA-rated vehicles with direct exposure to First Brands’ debt were four business…