DBRS Assigns Rating to the Loans of Brightwood Capital Fund III Holdings SPV, LLC

DBRS, Inc. (“DBRS”) has today assigned a rating of AA (sf) to the Loans contemplated to be issued under the Brightwood Capital Fund III Holdings SPV, LLC revolving credit facility, up to the Total Commitment of $150,000,000, as per the Credit Agreement, dated as of August 8, 2014. The Loans will be collateralized primarily by a portfolio of U.S. middle market corporate loans and other corporate obligations. Brightwood Capital Fund III Holdings SPV, LLC is managed by Brightwood Capital Advisors LLC. The DBRS rating on the Loans addresses Brightwood Capital Fund III Holdings SPV, LLC’s ability to make timely payments of interest and ultimate payment of principal on or before the Final Maturity Date (as defined in the Credit Agreement referred to above).

The rating reflects the following:

(1) The Credit Agreement dated August 8, 2014.

(2) The integrity of the transaction structure.

(3) DBRS’s assessment of the portfolio quality.

(4) Adequate credit enhancement to withstand projected collateral loss rates under various cash flow stress scenarios.

(5) DBRS’s assessment of the origination, servicing and CLO management capabilities of Brightwood Capital Advisors LLC.

To assess portfolio credit quality, DBRS provides a credit estimate or internal assessment for each non-financial corporate obligor in the portfolio, not rated by DBRS. Credit estimates are not ratings; rather they represent a model-driven default probability for each obligor that is used in assigning a rating to the facility.

The principal methodology is Rating Methodology for CLOs and CDOs of Large Corporate Credit, which can be found on our website under Methodologies.

This credit rating has been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU.

Note:
All figures are in U.S. dollars unless otherwise noted.