KBRA Affirms Ratings for Avoca CLO XXII Designated Activity Company
21 Jan 2025 | London
KBRA UK (KBRA) affirms the ratings for seven classes of notes issued by Avoca CLO XXII DAC. All notes have received timely interest distributions since the transaction closed.
Avoca CLO XXII DAC is a €406.0 million European cash flow CLO managed by KKR Credit Advisors (Ireland) Unlimited Company (KKR Credit Ireland or the collateral manager), a relying adviser of KKR Credit US (KKR). The CLO closed in March 2021 and has 0.2 years remaining in the reinvestment period. The notes were collateralized by a €400.0 million portfolio of European syndicated senior secured leveraged loans and bonds to corporate borrowers at the closing date.
As of the November 2024 trustee report, the aggregate principal balance is €399.1 million, which includes €2.4 million in principal proceeds. The portfolio as of the November 2024 trustee report date is comprised of assets from 229 obligors. Since the 2024 surveillance, the Class A/B Par Value Test has remained steady at 138.6%. The K-WARF of the portfolio has increased from 2623 since the 2024 surveillance date to 2695, which represents a weighted average rating of B/B-.
The ratings on Class A, B-1 and B-2 Notes consider the timely payment of interest and ultimately payment of principal by the applicable stated maturity date, while the ratings on the Class C, D, E and F Notes consider the ultimate payment of interest and principal.
In performing the rating review, KBRA utilized its 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.
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