DBRS Confirms Ratings on Senior Funding Facility and Mezzanine Funding Facility of Northwoods Capital XV, Limited

DBRS, Inc. (DBRS) has today confirmed the rating of A (sf) on the Senior Funding Facility and the rating of BBB (low) (sf) on the Mezzanine Funding Facility (together, the Facilities) of Northwoods Capital XV, Limited pursuant to the Amended and Restated Warehouse Agreement (the Amendment) dated as of May 16, 2017.

The rating on the Senior Funding Facility addresses the timely payment of the Senior Base Interest Amount and the Senior Additional Payment Amounts, and the ultimate payment of Senior Funding Amounts on or before the Scheduled Maturity Date in May 2026. The rating on the Mezzanine Funding Facility addresses the ultimate payment of the Mezzanine Base Interest Amount, the Mezzanine Additional Payment Amounts, and the Mezzanine Funding Amounts on or before the Scheduled Maturity Date in May 2026. For the avoidance of doubt, these ratings do not address the Senior Additional Interest Amount or the Mezzanine Additional Interest Amount.

The rating actions were taken to reflect the impact of the execution of the Amendment. The amended language decreases the total aggregate funding amount of the Facilities to $446.22 million from $599.40 million. The rating confirmations by DBRS do not signify the approval of the Amendment by DBRS or an opinion by DBRS as to whether the Amendment is beneficial or detrimental to the holders of the securities.

The confirmations reflect the following primary considerations:

(1) The Amendment dated as at May 16, 2017.

(2) The integrity of the transaction structure.

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

(4) DBRS’s assessment of the origination, servicing and collateralized loan obligation management capabilities of Angelo, Gordon & Co., L.P. as the Collateral Manager.

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

The principal methodology is Rating CLOs and CDOs of Large Corporate Credit, which can be found on dbrs.com under Methodologies.

This rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.