KBRA Assigns Ratings to Insurance Private Credit IV LLC
23 Dec 2025 | New York
KBRA assigns ratings to two classes of notes issued by Insurance Private Credit IV LLC (IPC IV), a direct lending facility that will originate and purchase middle market senior secured loans.
IPC IV is a maximum $892.5 million delayed draw middle market direct lending facility managed by Goldman Sachs Asset Management, L.P. (“GSAM L.P.” or the “collateral manager”). On the Conversion Date, which is expected to be the closing date of this amendment, a portion of the Subordinated Notes drawn will be converted at the direction of the collateral manager into a principal amount of Class A and B Notes, such that the total funded amount conforms to the Target Debt Ratio. Thereafter, the notes can be further drawn on a pro-rata basis up to the maximum commitment amounts to fund additional portfolio acquisitions of primarily middle market senior secured term loans to corporate borrowers.
The rated notes benefit from internal credit enhancement through subordination, overcollateralization, and excess spread. The collateral portfolio is comprised primarily of first-lien, senior secured middle market loans and has an initial K-WARF of 3064. The transaction has approximately 2.3 years remaining in the reinvestment period, during which the initial portfolio may experience turnover through trading and substitution. The portfolio may hold a limited amount of covenant-lite loans and first-lien last-out loans. The transaction will use a matrix based on weighted average spread (WAS) and weighted-average KBRA recovery rate (WARR) to maintain a minimum level of portfolio credit quality. The ratings reflect expected credit enhancement levels, excess spread, and coverage tests, including overcollateralization and interest coverage tests.
The rating on the Class A Notes considers the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the rating on the Class B Notes consider the ultimate payment of interest and principal by the applicable stated maturity date.
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