Press Release|CMBS

KBRA Places all Ratings of Great Wolf Trust 2019-WOLF on Watch Developing

25 Apr 2024   |   New York

Contacts

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.

Related Publication

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. 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.

Doc ID: 1004079

CONNECT WITH KBRA
805 Third Avenue
29th Floor
New York, NY 10022
+1 (212) 702-0707
Contact Us

© 2010-2024 Kroll Bond Rating Agency, LLC. All Rights Reserved. Kroll Bond Rating Agency, LLC is not affiliated with Kroll Inc., Kroll Associates Inc., KrollOnTrack Inc., or their affiliated businesses.