KBRA Assigns Ratings to Thoma Bravo Credit Asset Funding ABS, LLC
4 Dec 2024 | New York
KBRA assigns ratings to five classes of notes issued by Thoma Bravo Credit Asset Funding ABS, LLC (“TBCAF 2023-1R”), a cash flow collateralized debt obligation backed by a diversified portfolio of a a static portfolio of recurring revenue loans (“RRLs”, also known as “late-stage lending loans”) and middle market loans (“MMLs”).
TBCAF 2023-1R is a $456.3 million securitization managed by Thoma Bravo Credit Partners II, L.P. (“Thoma Bravo” or the “Collateral Manager”). The securitization consists of $200.8 million of Class A-1-R floating-rate notes, $50.2 million of Class A-2-R fixed-rate notes, $52.5 million of Class B-R fixed-rate notes, $45.6 million of Class C-R fixed-rate notes, and $29.7 million of Class D fixed-rate notes (collectively the “rated notes”), and $117.5 million of subordinated notes, which expect to receive payments from a static portfolio of recurring revenue loans RRLs and MMLs. The portfolio is concentrated in loans to obligors in the software and technology industries who serve a diverse base of end users.
Thoma Bravo is a private equity, growth equity and credit firm that invests primarily in the software and technology sectors, with over 400 completed equity software transactions and over $160 billion in asset under management across the overall platform (as of June 2024). The Thoma Bravo credit platform has invested approximately $6.8 billion in over 75 portfolio companies since inception. The senior management team has extensive industry experience. This is the second KBRA-rated RRL securitization managed by Thoma Bravo.
Thoma Bravo is headquartered in Chicago and has additional offices in New York, San Francisco, Miami, and London. The Thoma Bravo credit team is supported by the 85+ person Equity Funds investment staff, in addition to 34 Operating Partners/advisors and 5 Capital Markets investment professionals.
Kroll Bond Rating Agency’s (KBRA) ratings on Class A-1-R, Class A-2-R (collectively “Class A-R”), Class B-R and Class C-R Notes considers timely payment of interest and ultimate payment of principal by the applicable stated maturity date. The rating on Class D Notes considers ultimate payment of interest and ultimate payment of principal by the applicable stated maturity date.
KBRA analyzed the transaction using the Structured Credit Global Rating Methodology, the Global Structured Finance Counterparty Methodology, and the ESG Global Rating Methodology.
To access ratings and relevant documents, click here.
Click here to view the report.