KBRA Places all Ratings of Great Wolf Trust 2019-WOLF on Watch Developing
25 Apr 2024 | New York
KBRA places all ratings of Great Wolf Trust 2019-WOLF, a $1.1 billion CMBS single-borrower transaction, on Watch Developing. The Watch action is based on market information that the borrower is working on the imminent refinancing of the transaction. The refinancing will result in the withdrawal of all the ratings when complete. If the expected refinancing does not occur, and the transaction is not paid off in full, KBRA will take the appropriate rating actions as needed.
The current loan financing is a floating rate first mortgage loan structured with an initial two-year term with three, one-year extension options, two of which have been exercised. The next scheduled maturity is in December 2024. The loan can be extended provided there are no outstanding events of default; however, no LTV, DSC, or debt yield tests need to be achieved as a requirement for any extension. In the event of an extension, a replacement interest rate cap agreement for the extended loan term must be obtained. The extension strike rate must be the greater of 4.25% or result in a DSC of no less than 1.10x. The loan is currently in its second extension period.
The loan collateral originally included the fee simple interests in 14 wholly owned properties; the minority equity interests in two joint venture entities which each own a resort property; and a pledge of the license agreement for a third party-owned and managed property. The mortgage loan is also secured by non-real estate collateral including certain franchise assets, equity interests, interests in condominium rental management agreements relating to non-collateral condominium units (including the right to receive management fees under such agreements), and intellectual property. In March of 2024, the securitization of Great Wolf Trust 2024-WOLF, included the refinancing of six of the wholly owned properties from this transaction, leading to their release and a $604.3 million pay down of this transaction, leaving eight wholly owned properties.
KBRA will continue to monitor the transaction and loan performance and will seek to resolve or update the Watch Developing status within 90 days.
To access rating and relevant documents, click here.