KBRA Assigns Ratings to Refinancing of Hildene TruPS Securitization 4, Ltd.
2 Apr 2025 | New York
KBRA assigns ratings to six classes of refinancing notes issued by Hildene TruPS Securitization 4, Ltd. (HITR4), a securitization backed by a portfolio of bank and insurance TruPs CDO assets. The transaction originally closed in June 2022 and this transaction will reset the terms of the securitization including the stated maturity, conditions for Manager to sell assets, non-call and non-turbo periods, portfolio and note notional balances and note interest rates.
HITR4 will have an initial performing collateral par value of $541.4 million from 74 obligors (91 assets) and total liabilities of $483.2. 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 consists of $263.8 million Class A1-R Notes, $71.1 million Class A2A-R Notes, $40.0 million Class A2F-R Notes, $58.4 million Class B-R Notes, $22.2 million Class C-R Notes, $27.8 million Class D-R Notes,and $72.2 million of Subordinated Notes. The ratings reflect current credit enhancement levels, excess spread, and structural features.
The Classes A1-R, A2A-R, A2F-R, B-R, C-R, and D-R Notes are expected to have par subs of 51.3%, 30.8%, 30.8%, 20.0%,15.9%, and 10.8% respectively. The current portfolio has a K-WARF of 401, which represents a weighted average portfolio assessment between BBB- and BB+.
Kroll Bond Rating Agency's (KBRA) ratings on Class A1-R, A2A-R and A2F-R reflects KBRA’s opinion regarding the likelihood of timely payment of interest and ultimate repayment of principal. While the ratings assigned to the Class B-R, C-R and D-R reflects KBRA’s opinion regarding the likelihood of ultimate payment of interest and principal.
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