OVERVIEW
- LCM 29 Ltd./LCM 29 LLC's issuance is a CLO transaction backed primarily by broadly syndicated speculative-grade senior secured term loans.
- We assigned our preliminary ratings to the class X, A-1, B, C, D, and E notes.
- The preliminary ratings reflect the transaction's diversified collateral pool, credit enhancement, and legal structure, among other factors.
CENTENNIAL (S&P Global Ratings) April 19, 2019--S&P Global Ratings today assigned its preliminary ratings to LCM 29 Ltd./LCM 29 LLC's floating-rate notes (see list). The note issuance is a collateralized loan obligation transaction backed primarily by broadly syndicated speculative-grade (rated 'BB+' and lower) senior secured term loans that are governed by collateral quality tests. The preliminary ratings are based on information as of April 19, 2019. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect:
- The diversified collateral pool.
- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization.
- The experience of the collateral manager's team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading.
- The transaction's legal structure, which is expected to be bankruptcy remote.
