KBRA Assigns an A- Rating to BNP Paribas' Participation in a Capital Call Facility to Keensight Nova VI A
28 Dec 2023 | London
KBRA UK (KBRA) assigns a rating to BNP Paribas' ("BNPP") participation in a capital call facility in the form of a committed, secured facility (the “Facility”) to Keensight Nova VI A S.L.P (the “Borrower” or the “Fund”). The Facility is provided by a consortium of lenders including BNPP. The rating assigned was requested by BNPP as a participating lender in the transaction. Neither Keensight Capital nor any of its associates has requested this report or the rating, and this report has not been prepared for or approved by any of them. KBRA has assigned an A- rating and stable outlook to BNPP's €144 million commitment to the €606.75 million Facility.
The Facility may be used to finance investments, costs, fees and expenses incurred in connection with investments as well as to finance any other expenses permitted within the Fund’s governing documents. The Borrowing Base is divided into Qualifying Investors and Non-Qualifying Investors, with Qualifying Investors required to be approved by the Lenders to be included in the Borrowing Base. The Lenders’ recourse, however, is to all LPs of the Fund, including Non-Qualifying Investors. Availability under the Facility is restricted to the lower of: (i) 30% of the aggregate Capital Commitments; and (ii) 100% of the total undrawn commitments. The uncalled commitment test requires the Fund to maintain uncalled commitments of 1.5x the amount of all Fund indebtedness, or 1.3x once 50% of the capital commitments have been called on the basis of Qualifying Investors only.
Established in 2013 following a spin-out from Rothschild, Keensight Capital is a pan-European Growth Buyout firm that has a 21-year track record. Across its six funds, the Keensight team has invested in 69 companies and completed 48 exits, generating an overall gross IRR of 39% and an average gross multiple of 3.4x. Keensight Nova VI is the sixth vintage in Keensight's flagship strategy targeting high-growth lower to mid-market companies in Western Europe, with equity ticket needs ranging from €50 million to €400 million. Keensight Nova VI is comprised of two partnerships, Keensight Nova VI A and Keensight Nova VI B. The two funds invest in parallel, however Keensight Nova VI A is the sole borrower under the Facility Agreement. The Fund had its final close on 19 October 2023 and has received a total of €2,022.5 million in commitments from over 100 investors.
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