DBRS Morningstar Finalizes Provisional Ratings on the Secured Notes of BlackRock DLF IX 2020-1 CLO, LLC.
ENPNewswire-August 8, 2022--DBRS Morningstar Finalizes Provisional Ratings on the Secured Notes of BlackRock DLF IX 2020-1 CLO, LLC
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Release date- 05082022 - DBRS Morningstar Finalizes Provisional Ratings on the Secured Notes of BlackRock DLF IX 2020-1 CLO, LLC.
DBRS, Inc. (DBRS Morningstar) finalized its provisional ratings on the following classes of Notes (together, the Secured Notes) issued by BlackRock DLF IX 2020-1 CLO, LLC, pursuant to the Note Purchase and Security Agreement (the NPSA) dated as of July 21, 2020, among BlackRock DLF IX 2020-1 CLO, LLC, as Issuer, U.S. Bank National Association, as Collateral Agent, Custodian, Document Custodian, Collateral Administrator, Information Agent, and Note Agent, and the Purchasers referred to therein:
Class A-1 Notes at AAA (sf)
Class A-2 Notes at AAA (sf)
Class B Notes at AA (low) (sf)
Class C Notes at A (high) (sf)
Class D Notes at BBB (high) (sf)
Class E Notes at BB (high) (sf)
Class W Notes at B (sf)
The finalized ratings on the Class A-1 and A-2 Notes address the timely payment of interest (excluding the additional interest payable at the Post-Default Rate, as defined in the NPSA) and the ultimate payment of principal on or before the Stated Maturity of July 21, 2030.
The finalized ratings on the Class B, C, D, E, and W Notes address the ultimate payment of interest (excluding the additional interest payable at the Post-Default Rate, as defined in the NPSA) and the ultimate payment of principal on or before the Stated Maturity of July 21, 2030. The Class W Notes have a fixed-rate coupon that is lower than the spread/coupon of some of the more-senior Secured Notes. The Class W Notes also benefit from the Class W Note Payment Amount, which allows for principal repayment of the Class W Notes with collateral interest proceeds, in accordance with the Priority of Payments.
The rationale for the finalization of the provisional rating is the completion of the Phase I Commitment Period, as defined in the NPSA. As a result, DBRS Morningstar was able to finalize the provisional ratings on the Secured Notes.
The notes are collateralized primarily by a portfolio of U.S. middle-market corporate loans. The Issuer is managed by BlackRock Capital Investment Advisors, LLC (BCIA), which is a wholly owned subsidiary of BlackRock, Inc. DBRS Morningstar considers BCIA an acceptable collateralized loan obligation (CLO) manager.
The finalized ratings reflect...
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