Preliminary Ratings Assigned To Trinitas CLO V Ltd. In Connection With Proposed Refinancing


  • We reviewed Trinitas CLO V Ltd., which, based on its proposed supplemental indenture, is expected to refinance its class A, B-1, B-2, C and D notes on April 25, 2019, through an optional redemption and replacement note issuance.
  • After analyzing the proposed changes to the transaction, we assigned our preliminary ratings to the replacement class A-R, B-1R, B-2R, C-R, and D-R notes.
  • The original class A, B-1, B-2, C, and D notes are expected to be fully redeemed with the proceeds from the replacement note issuance on the April 25, 2019, refinancing date.
  • The class E notes are not being refinanced.
NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings today 
assigned its preliminary ratings to the class A-R, B-1R, B-2R, C-R, and D-R 
replacement notes from Trinitas CLO V Ltd., a collateralized loan obligation 
(CLO) that originally closed in September 2016 that is managed by Trinitas 
Capital Management LLC. The replacement notes will be issued via a proposed 
supplemental indenture (see list). The class E notes are not being refinanced.

The preliminary ratings are based on information as of April 18, 2019, and 
reflect our opinion that the credit support available is commensurate with the 
associated rating level. Subsequent information may result in the assignment 
of final ratings that differ from the preliminary ratings.

On the April 25, 2019, refinancing date, the proceeds from the issuance of the 
replacement notes are expected to redeem the original class A, B-1, B-2, C, 
and D notes. At that time, we anticipate withdrawing the ratings on the 
original refinanced notes and assigning ratings to the new replacement notes. 
However, if the refinancing doesn't occur, we may affirm the ratings on the 
original notes and withdraw our preliminary ratings on the replacement notes.

The replacement notes are being issued via a proposed supplemental indenture, 
which, in addition to outlining the terms of the replacement notes, will also 
issue the replacement notes at lower spreads than the original class A, B-1, 
C, and D notes. The class B-2 note is being refinanced to a floating-rate note 
from a fixed-rate note. 

Our review of this transaction included a cash flow analysis, based on the 
portfolio and transaction as reflected in the aforementioned 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 results of the cash flow analysis--and other 
qualitative factors, as applicable--demonstrated, in our view, that all of the 
rated outstanding classes have adequate credit enhancement available at the 
rating levels associated with these rating actions.

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 will take rating actions as we deem necessary.
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