KBRA Assigns Preliminary Ratings to RRE 21 Loan Management DAC
16 Aug 2024 | London
KBRA UK assigns preliminary ratings to seven classes of notes issued by RRE 21 Loan Management DAC, a cash flow collateralised loan obligation (CLO) backed primarily by a diversified portfolio of Euro-denominated corporate loans.
RRE 21 Loan Management DAC is managed by Redding Ridge Asset Management (UK) LLP (“RRAM UK” or the “collateral manager”). The CLO will have a 4.6-year reinvestment period and a 15-year legal final. The ratings reflect initial credit enhancement levels, coverage tests including par value and interest coverage tests, excess spread, and a reinvestment overcollateralisation test.
The collateral in RRE 21 Loan Management DAC will mainly consist of broadly syndicated leveraged loans and bonds issued by corporate obligors diversified across sectors. The target portfolio par amount is €400.0 million with exposures to 131 obligors. The obligors in the portfolio have a K-WARF of 2522, which represents a weighted average portfolio assessment of approximately B.
RRAM UK is a UK-based subsidiary of Redding Ridge Asset Management LLC, an independent asset management company established and seeded by Apollo Global Credit Management, LLC (Apollo) in 2016 to manage CLOs. The RRAM UK management arm currently manages more than €7.7 billion in assets across sixteen European CLOs.
The ratings on the Class A-1, A-2A, A-2B Notes consider the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the ratings on the Class B, C-1, C-2 and D Notes consider the ultimate payment of interest and principal by the applicable stated maturity date.
To access rating and relevant documents, click here.
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