KBRA Assigns a Rating to BNP Paribas' Secured Subscription Finance Facility to CVC Credit Partners Private Credit 2023-1 SCSp
17 Sep 2024 | London
KBRA UK (KBRA) assigns a AA- rating to BNP Paribas' Secured Subscription Finance Facility (the "Facility") to CVC Credit Partners Private Credit 2023-1 SCSp (the "Fund"). The Outlook is Stable. The rating was requested by BNP Paribas as the sole lender in the transaction. Neither CVC Credit Partners Private Credit 2023-1 General Partner S.à r.l. (the “GP”) nor any of its associates has requested this report or the rating, and this report has not been prepared for or approved by any of them.
The Facility is a €75 million two-year bilateral Senior Secured Subscription Finance Facility, subject to an uncommitted accordion increase, up to a maximum amount of €150 million. The initial maturity is December 2025, subject to three extension options of one-year each at Lender’s sole discretion. The lenders have a first priority security interest in the uncalled capital commitments of the Fund, including the security over the right of the General Partner to make capital calls under the Fund’s governing documents during an uncured Event of Default. Availability under the Facility is restricted to the lower of (i) the maximum Facility amount and (ii) (x) 150% of uncalled commitments or (y) after 50% of capital commitments have been called, 120% of uncalled commitments provided the Fund is in compliance with a net asset value (“NAV”) to drawn facility test of greater than 150%.
The borrower has been established by CVC as a separately managed account for a single investor (the “LP”). The LP is a fully owned and controlled investment vehicle of a highly rated institutional investor which is amongst one of the largest asset managers in Canada. The Facility is secured by a €250 million commitment from the LP that will be used by the Fund to co-invest alongside CVC Credit Partners European Direct Lending Fund IV (“CVC EU DL IV” or the “Related Fund”), the fourth vintage of CVC’s direct lending strategy to invest in privately negotiated secured loans to European mid-market companies.
Established in 1981, CVC (the “Firm”) is a global alternative investment manager in private equity, secondaries, credit and infrastructure strategies. The Firm has approximately €193 billion of assets under management (“AUM”) and operates from 30 offices across Europe, the Americas, and Asia-Pacific regions. CVC’s Credit platform was established in 2006 and manages approximately €43 billion of assets.
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