NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to the Class A Notes and the Class B Notes (together, the “Notes”) issued by Oxford Finance Funding 2016-1 LLC (see ratings list below).
Oxford Finance LLC (Oxford) is the originator and servicer of the Oxford Finance Funding 2016-1 transaction (Oxford 2016-1). Oxford is a specialty finance company that originates, underwrites, manages, and finances senior secured loans provided exclusively to life sciences and healthcare services companies. Oxford lends to biotech, pharmaceutical, medical devices and healthcare services companies and offers loan products that include senior secured term loans, cash flow loans, traditional asset-based revolving lines of credit, term loans secured primarily by real estate and, occasionally, equipment loans.
The Notes will be secured by an initial collateral pool comprised primarily of senior secured loans and the loans are secured by substantially all assets of the obligor. In the case of life science companies, the loans often include a negative pledge on intellectual property. The statistical collateral pool will consist of 75 loans to 63 obligors with an aggregate loan balance of approximately $390.4 million. The exposures to the life sciences and healthcare service sectors will be approximately 85.5% and 14.5%, respectively.
Oxford 2016-1 benefits from credit enhancement in the form of overcollateralization, which on the closing date is approximately 27% for the Class A Notes and 17% for the Class B Notes, as well as excess spread. The transaction features a 24-month reinvestment period during which time principal collections may be reinvested in additional loans that meet certain eligibility criteria. The transaction also features a reserve account that will be partially funded on the closing date and will grow to 3.0% of the outstanding Note balance from excess interest collections, after paying expenses, interest and principal on the Notes.
KBRA analyzed the transaction using KBRA’s General Rating Methodology for Asset-Backed Securities published on July 30, 2012.
For complete details on the analysis, please see KBRA’s Presale Report, Oxford Finance Funding 2016-1 LLC Presale Report, which was published today at www.kbra.com.
| Class | Rating | Initial Note Balance (USD) | ||||||||
| A | A(sf) | $285,000,000 | ||||||||
| B | BBB(sf) | $39,000,000 |
Representations and Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled Disclosure is available at the following link: Oxford Finance Funding 2016-1 LLC Representations and Warranties Disclosure.
Related Publications: (available at www.kbra.com)
- General Rating Methodology for Asset-Backed Securities
- Oxford Finance Funding 2016-1 LLC Presale Report
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
