KBRA Affirms Ratings for VCP RRL ABS II, LLC
20 Mar 2025 | New York
KBRA affirms the ratings of the Class A-1, Class A-2, Class A-2-A, Class B, and Class B-A Notes issued by VCP RRL ABS II, LLC (“VCP II”). VCP II is a $575.7 million securitization originated by Vista Credit Partners, LLC, an affiliate of Vista Equity Partners Management LLC. The transaction originally closed in July 2022 and later issued $112 million of additional notes across the A-2, Class B, and Class C Notes in March 2023. The maximum advance rate is 56% for the Class A Notes and 67% for the Class B Notes.
The collateral in VCP II currently consists of recurring revenue loans and middle market leveraged loans issued by corporate obligors diversified across sectors. As of the January 31, 2025 trustee report, the current portfolio has exposure to 39 obligors, the pool balance of the collateral obligations is $568.9 million and there is a principal proceeds balance of $12.7 million, bringing the adjusted pool balance to $581.6 million. The obligors in the portfolio have a K-WARF of 3978, which represents a weighted average assessment of approximately B-/CCC+. There are no defaulted, discount, credit risk, or delinquent obligations in the portfolio. The transaction is in compliance with the borrowing base condition and all portfolio tests. The transaction exited its reinvestment period on June 30th, 2024.
The surveillance analysis used information through the January 2025 trustee report date. All Notes have received timely interest distributions since the transaction has closed.
KBRA's ratings on the Class A-1, Class A-2, Class A-2-A, Class B, Class B-A Notes consider timely payment of interest and ultimate payment of principal by the applicable stated maturity date.
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