KBRA Assigns Preliminary Ratings to Clarus Capital Funding 2024-1, LLC
12 Sep 2024 | New York
KBRA assigns preliminary ratings to six classes of notes issued by Clarus Capital Funding 2024-1, LLC (Clarus 2024-1), an equipment ABS transaction.
Clarus 2024-1 represents the first equipment ABS transaction sponsored by Clarus Capital, LLC (Clarus). Founded in 2021, Clarus is a large-ticket independent equipment finance company headquartered in Boston, Massachusetts. The Company is sponsored by BharCap Partners, a private investment firm that has approximately $2.3 billion in assets under management. As of August 31, 2024, the net asset balance of Clarus’ portfolio totaled approximately $311 million across 93 contracts and 31 obligors. The Clarus 2024-1 transaction is secured by a portfolio of equipment lease and loan contracts.
The aggregate securitization value (ASV) of the portfolio is approximately $283.19 million as of the September 1, 2024 initial cut-off date (Cut-off Date ASV). The contract pool yield of the underlying contracts is approximately 9.90%. The portfolio is comprised of 75 contracts to 29 obligors. The average securitization value by contract is approximately $3.78 million and the average exposure to an obligor is approximately $9.77 million. The weighted average original and remaining contract terms are 57 months and 45 months, respectively. The maximum exposure to an obligor is approximately $31.16 million or approximately 11.00% of the Cut-off Date ASV. Clarus 2024-1 will issue six classes of notes (the Notes), totaling $263.09 million. The Notes benefit from credit enhancement in the form of overcollateralization, excess spread, a reserve account, and subordination for senior classes.
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