KBRA Affirms the Ratings for Barings Loan Partners CLO Ltd. 2
10 Oct 2024 | New York
KBRA affirms the ratings for three classes of notes issued by Barings Loan Partners CLO Ltd. 2, a cash flow collateralized loan obligation (CLO) backed by a diversified portfolio of broadly syndicated senior secured leveraged loans. Since the transaction closed, the rated notes have received timely distributions of interest payments.
Barings Loan Partners CLO Ltd. 2 (Barings CLO 2) is a $479.6 million cash flow CLO managed by Barings LLC (“Barings” or the “collateral manager”). The CLO closed on December 21st, 2021, and the reinvestment period ends in January 2025. The notes were collateralized by a $500.00 million portfolio of broadly syndicated senior secured term loans to corporate borrowers at closing.
As of the September 2024 trustee report, the aggregate principal balance of the collateral obligations is $483.3 million and there is a principal proceeds balance of $7.6 million. There are four defaulted obligors in the portfolio with assets totaling $8.9 million. There are no discount obligations in the portfolio and the transaction is in compliance with collateral quality tests and coverage tests. The current portfolio K-WARF is 2509, which represents a weighted average portfolio credit assessment of around B-.
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