KBRA Affirms the Ratings for CBAM 2020-12, Ltd.
16 Jun 2025 | New York
KBRA affirms three ratings of the notes issued by CBAM 2020-12, Ltd., a cash flow collateralized loan obligation (CLO) backed by a diversified portfolio of broadly syndicated senior secured leveraged loans. Since the transaction closed, the rated notes have received timely distributions of interest payments.
CBAM 2020-12, Ltd. is a $467.3 million cash flow CLO managed by CBAM Partners, LLC (“collateral manager”), which was acquired by Carlyle Group Inc. (“Carlyle”) in March 2022. The notes were collateralized by a $500.0 million portfolio of broadly syndicated senior secured term loans to corporate borrowers at closing.
The CLO was reset in July 2021 and has approximately 1.1 years remaining in the reinvestment period. The ratings reflect current credit enhancement levels, excess spread, and coverage tests.
As of the April 2025 trustee report, the aggregate principal balance of the collateral obligations is $503.0 million and there is a negative balance in the principal collection account of $9.2 million. There are two defaulted obligations and no discount obligations in the portfolio. The transaction is passing all coverage tests but is failing the WAC test and KBRA WAS test. The current portfolio K-WARF is 2460, which represents a weighted average portfolio credit assessment of approximately ‘B’.
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