Kroll Bond Rating Agency Assigns Preliminary Ratings to Refinancing Notes Issued by RRE 6 Loan Management DAC

Strategic Insights -

RRE 6 Loan Management DAC, a cash flow collateralized loan obligation (CLO) managed by Redding Ridge Asset Management (UK) LLP, will reset its terms, including the stated maturity, non-call period, and note interest rates, following the issuance of new refinancing notes. The CLO, which originally closed in March 2021, will have a 4.5-year reinvestment period and a 13-year legal final maturity. The ratings reflect initial credit enhancement levels, coverage tests, excess spread, and a reinvestment overcollateralization test.

Key Takeaways:

  • The CLO, RRE 6 Loan Management DAC, is managed by Redding Ridge Asset Management (UK) LLP, a UK-based subsidiary of Redding Ridge Asset Management LLC, established by Apollo Global Credit Management, LLC (Apollo) in 2016.
  • The CLO will have a diversified portfolio of Euro-denominated corporate loans, consisting mainly of broadly syndicated leveraged loans and bonds, with a target portfolio par amount of EUR400.0 million and exposures to 162 obligors.
  • The obligors in the portfolio have a K-WARF of 2451, representing a weighted average portfolio assessment of approximately B.
  • The CLO will have a 4.5-year reinvestment period and a 13-year legal final maturity.
  • The ratings on the notes consider the timely payment of interest and ultimate payment of principal by the applicable stated maturity date.
  • RRAM UK manages more than EUR8.6 billion in assets across 19 European CLOs.

Statistics:

  • The CLO will have a target portfolio par amount of EUR400.0 million.
  • The CLO will have exposures to 162 obligors.
  • The obligors in the portfolio have a K-WARF of 2451.
  • RRAM UK manages more than EUR8.6 billion in assets across 19 European CLOs.
  • The CLO will have a 4.5-year reinvestment period.
  • The CLO will have a 13-year legal final maturity.

Sources:

  • Kroll Bond Rating Agency, LLC, KBRA UK (KBRA) assigns preliminary ratings to five classes of refinancing notes issued by RRE 6 Loan Management DAC [ Reference ]