Press Release|Funds

KBRA Assigns a Rating to BNP Paribas' Participation in a Secured Revolving Credit Tranche A Facility to Lone Star Fund XII, L.P.

29 Mar 2024   |   London

Contacts

KBRA UK (KBRA) assigns a rating to BNP Paribas' ("BNPP") participation in a Secured Revolving Credit Tranche A Facility (the "Facility") to Lone Star Fund XII, L.P. ("Fund XII" or the "Fund"). The Facility is provided by a consortium of lenders including BNPP. KBRA has assigned an A rating and Stable outlook to BNPP's $250.0 million commitment to the $2.1 billion Tranche A Facility.

The Lenders have a first priority security interest in the uncalled capital commitments of the Fund, including security over the right of the general partner to make capital calls. The Lenders also benefit from bank account security over the capital call accounts. The Facility agreement includes two tranches, a Tranche A Facility and Tranche B Facility. Tranche A is senior to Tranche B, including relating to rights of payment, with the proceeds of capital calls made by the Agent to be used first to repay Tranche A. Additionally, Tranche B can only be drawn once Tranche A has been fully drawn.

Established in 1995, Lone Star is a private equity firm that has organised 23 funds with aggregate capital commitments totalling approximately $87.0 billion. Lone Star has a global footprint with 11 international offices across North America, Europe and Asia. Fund XII is a 2022 vintage fund. As of December 2023, Fund XII had raised an aggregate of $4,459 million in capital commitments from approximately 67 Limited Partners. The Fund will follow a similar strategy to its predecessor funds to invest opportunistically across a variety of investment assets but generally seek opportunistic investments in financial and other investment assets, including single-family residential debt and corporate and consumer debt products as well as investments in financially oriented and other operating companies.

To access rating and relevant documents, click here.

Click here to view the report.

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

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.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

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.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA UK

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. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.

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