KBRA Assigns Ratings to Second Refinancing of Hildene TRUPS Securitization 3, Ltd
27 Jun 2025 | New York
KBRA assigns ratings to six classes of refinancing notes issued by Hildene TruPS Securitization 3, Ltd. (HITR3), a securitization backed by a portfolio of bank and insurance TruPS CDO assets. The transaction originally closed in June 2020 as Hildene TruPS Securitization 2020-3 Ltd and had an initial refinancing in August 2021. This transaction will include an upsize of $43.7 million of new assets and resets the terms of the securitization including the stated maturity, non-call period, payment date when Turbo Payment Percentage is applied, portfolio and note notional balances and note interest rates.
It is expected to have a performing collateral par value of $363.1 million from 64 obligors (72 assets) and total liabilities of $270.7 million. The transaction is static although Hildene Structured Advisors, LLC (HSA), the named collateral manager, can direct a limited amount of sales. HSA is a relying advisor to Hildene Capital Management, LLC (together with its affiliates, Hildene).
The securitization is expected to consist of $176.4 million Class A1-RR Notes, $30.0 million Class A2-FR Notes, $51.4 million Class A2-NR Notes, $31.1 million Class B-RR Notes, $13.7 million Class C-RR Notes, $24.7 million Class D-RR Notes, and $34.7 million of Subordinated Notes. The ratings reflect current credit enhancement levels, excess spread, and structural features.
The Classes A1-RR, A2-NR, A2-FR, B-RR, C-RR, and D-RR Notes are expected to have par subs of 51.7%, 29.5%, 29.5%, 21.0%, 17.3%, and 10.5% respectively. The current portfolio has a K-WARF of 432, which represents a weighted average portfolio assessment between BBB- and BBB-.
Kroll Bond Rating Agency's (KBRA) preliminary ratings on Class A1-RR, A2-NR and A2-FR reflects KBRA’s opinion regarding the likelihood of timely payment of interest and ultimate repayment of principal. While the preliminary rating assigned to the Class B-RR, C-RR and D-RR reflects KBRA’s opinion regarding the likelihood of ultimate payment of interest and principal.
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