ข่าวประชาสัมพันธ์การเงิน/หลักทรัพย์

Ratings Assigned To Six Classes From Telos CLO 2013-4 Ltd. In Connection With Refinancing

          CENTENNIAL (S&P Global Ratings) Jan. 17, 2018--S&P Global Ratings today assigned its ratings to the class A-R, B-R, D-R, and E-R replacement notes, class C-R loans, and new class X notes from Telos CLO 2013-4 Ltd./Telos CLO 2013-4 LLC, a collateralized loan obligation (CLO) originally issued in 2013 that is managed by Telos Asset Management LLC. We withdrew our ratings on the original class A, B, C, D, and E notes following payment in full (see list). 
          On the Jan. 17, 2018, refinancing date, the proceeds from the class A-R, B-R, C-R, D-R, and E-R replacement note and loan issuances were used to redeem the original class A, B, C, D, and E notes as outlined in the transaction document provisions. Therefore, we withdrew our ratings on the original notes in line with their full redemption, and we assigned ratings to the replacement notes, loans, and class X notes.
          The replacement notes and loans are being issued via a proposed supplemental indenture, which, in addition to outlining the terms of the replacement notes and loans, will also: 
          - Issue all of the replacement classes, except class E-R, at a lower spread than the original notes.
          - Extend the stated maturity, reinvestment period, and non-call period by 5.50, 4.50, and 4.50 years, respectively.
          - Replace the class C notes with the class C-R loans.
          - Issue the class X senior floating-rate notes, which are paid using interest proceeds in equal quarterly installments beginning with the April 2018 payment date and ending with the October 2021 payment date.
          - Issue additional subordinated notes, increasing the subordinated notes' balance to $40.00 million from $37.00 million.
          - Incorporate the recovery rate methodology and updated industry classifications outlined in our August 2016 CLO criteria update (see " Global Methodologies And Assumptions For Corporate Cash Flow And Synthetic CDOs," published Aug. 8, 2016). 

          Our review of this transaction included a cash flow analysis, based on the portfolio and transaction as reflected in the trustee report, to estimate future performance. In line with our criteria, our cash flow scenarios applied forward-looking assumptions on the expected timing and pattern of defaults, and recoveries upon default, under various interest rate and macroeconomic scenarios. In addition, our analysis considered the transaction's ability to pay timely interest or ultimate principal, or both, to each of the rated tranches. 
          The assigned ratings reflect our opinion that the credit support available is commensurate with the associated rating levels. 
          We will continue to review whether, in our view, the ratings assigned to the notes remain consistent with the credit enhancement available to support them, and we will take further rating actions as we deem necessary.