Kroll Bond Rating Agency (KBRA) assigns a preliminary rating to one class of notes issued by Hayfin Kingsland X, Ltd. (Hayfin Kingsland X).
Hayfin Kingsland X is a reinvesting cash flow collateralized loan obligation (CLO) managed by Hayfin Capital Management LLC. The rating reflects the initial credit enhancement levels, four levels of coverage tests including overcollateralization ratio and interest coverage tests, excess spread, and an interest reinvestment test.
The collateral in Hayfin Kingsland X will mainly consist of broadly syndicated leveraged loans issued by corporate obligors diversified across sectors. The obligors in the portfolio have a K-WARF of 2303, which represents a weighted average portfolio assessment of approximately B. The expected total portfolio par amount is $500 million with exposures to 194 obligors. The portfolio is required to have at least 92.5% first lien senior secured loans and a maximum of 60% cov-lite loans as defined in the transaction documents.
Hayfin Capital Management LLP (Hayfin) was founded in 2009 and is headquartered in London with credit teams in New York, Frankfurt, Madrid, Paris, and Luxembourg. It has total AUM of ‚¬9.9 billion and currently has over 90 investment professionals specializing in sourcing, structuring, and managing credit investments. In January 2018, Hayfin completed the acquisition of Kingsland Capital Management LLC (Kingsland). Kingsland was founded in 2005 and has a 13-year track record issuing $4 billion of CLOs across nine vehicles. Upon closing of the acquisition, Kingsland was renamed Hayfin Capital Management LLC and operates as a wholly-owned subsidiary of Hayfin in New York.
KBRA analyzed the transaction using Global Structured Credit Rating Methodology published on August 7, 2018.
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|Class||Initial Amount||Interest Rate||Par Subordination|
|Class A||$320,000,000||3mL + 1.46%||36.00%||AAA (sf)|
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
- OCP CLO 2019-16 “ New Issue Report
- Ellington CLO IV “ New Issue Report
- KBRAs Structured Credit 101: Collateralized Loan Obligations
- KBRAs Structured Credit 401: Primer on Combination Notes
- Par Wars: Attack on the Loans
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
George Lyons, CFA, Senior Director
Sean Malone, CFA, Director
Steven Zheng, Analyst
Eric Hudson, Managing Director