KBRA Affirms Ratings for Logan CLO III, Ltd.
11 Apr 2024 | New York
KBRA affirms ratings on three classes of Notes issued by Logan CLO III, Ltd. (“Logan III”), a cash flow collateralized loan obligation (CLO) backed by a diversified portfolio of broadly syndicated senior secured leveraged loans.
Logan CLO III, Ltd. is a $502.3 million cash flow CLO managed by Elmwood Asset Management LLC (“Elmwood”). The transaction closed in May 2022 and the reinvestment period ends in April 2027. Since the transaction closed the notes have received timely distributions of interest payments.
As of the March 2024 trustee report, the aggregate principal balance of the collateral obligations is $509.2 million and has a negative principal proceeds balance of $5.7 million. There are two default obligations and no discount obligations in the portfolio. Per the most recent trustee report, the transaction is in compliance with all portfolio profile tests.
Based on the trustee report, the portfolio comprises 1296 assets from 359 obligors. Since April 2023, the par subordination of the Class D and E Notes have decreased to 12.31% and 8.59% from 18.69% and 14.95% respectively, with the decrease mainly due to the amortization of the Class D Notes. The K-WARF of the transaction is 2368 which represents a weighted average credit assessment of B.
The rating on the Class A Notes considers the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the ratings on the Class D and E Notes consider the ultimate payment of interest and principal.
In performing the rating review, KBRA utilized its Structured Credit Global Rating Methodology, the Global Structured Finance Counterparty Methodology and the ESG Global Rating Methodology.
To access rating and relevant documents, click here.
Click here to view the report.