KBRA Assigns Preliminary Ratings to Thoma Bravo Credit Asset Funding ABS, LLC

KBRA assigns preliminary ratings to five classes of notes issued by Thoma Bravo Credit Asset Funding, ABS, LLC (“TBCAF 2023-1R”), a cash flow collateralized debt obligation backed by a diversified portfolio of a static portfolio of recurring revenue loans (“RRLs”, also known as “late-stage lending loans”) and middle market loans (“MMLs”).

TBCAF 2023-1R is a $456.3 million securitization managed by Thoma Bravo Credit Partners II, L.P. (“Thoma Bravo” or the “Collateral Manager”). The securitization consists of $200.8 million of Class A-1-R floating-rate notes, $50.2 million of Class A-2-R fixed-rate notes, $52.5 million of Class B-R fixed-rate notes, $45.6 million of Class C-R fixed-rate notes, and $29.7 million of Class D fixed-rate notes (collectively the “rated notes”), and $117.5 million of subordinated notes, which expect to receive payments from a static portfolio of recurring revenue loans RRLs and MMLs. The portfolio is concentrated in loans to obligors in the software and technology industries who serve a diverse base of end users.

Thoma Bravo is a private equity, growth equity and credit firm that invests primarily in the software and technology sectors, with over 400 completed equity software transactions and over $160 billion in asset under management across the overall platform (as of June 2024). The Thoma Bravo credit platform has invested approximately $6.8 billion in over 75 portfolio companies since inception. The senior management team has extensive industry experience. This is the second KBRA-rated RRL securitization managed by Thoma Bravo.

Thoma Bravo is headquartered in Chicago and has additional offices in New York, San Francisco, Miami, and London. The Thoma Bravo credit team is supported by the 85+ person Equity Funds investment staff, in addition to 34 Operating Partners/advisors and 5 Capital Markets investment professionals.

Kroll Bond Rating Agency’s (KBRA) ratings on Class A-1-R, Class A-2-R (collectively “Class A-R”), Class B-R and Class C-R Notes considers timely payment of interest and ultimate payment of principal by the applicable stated maturity date. The rating on Class D Notes considers ultimate payment of interest and ultimate payment of principal by the applicable stated maturity date.

KBRA analyzed the transaction using the Structured Credit Global Rating Methodology, the Global Structured Finance Counterparty Methodology, and the ESG Global Rating Methodology.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• Structured Credit: Structured Credit Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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.

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: 1006885

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