KBRA assigns preliminary ratings to four classes of notes issued by VCP RRL ABS III, LLC (VCP III), a securitization backed by a portfolio of recurring revenue and middle market corporate loans.

VCP III is an approximate $500.0 million securitization managed by Vista Credit Partners, L.P. (“VCP” or the “Collateral Manager”), an investment adviser and affiliate of Vista Equity Partners (collectively, with these affiliates and other funds managed by them and their affiliates “Vista”). The securitization consists of $275.0 million Class A Notes, $50.0 million Class B Notes, $50.0 million Class C Notes, $25.0 million Class D Notes, and $96.2 million of Subordinated Notes, which expect to receive payments from a portfolio of recurring revenue loans (“RRLs”) and middle market loans (“MMLs”). The reinvestment period is approximately two years from the closing date. The ratings reflect initial credit enhancement levels, excess spread, and structural features.

This is VCP’s third securitization collateralized predominately by RRL and MML. The RRL strategy focuses on first-lien senior loans to technology and software companies that have a minimum level of recurring revenue and low loan-to-value (LTV) ratios. VCP views the RRLs strategy as a complement to its middle market business and an extension of core competencies in the technology and software industries.

The Class A, B, C and D Notes have an advance rate of 55.0%, 65.0%, 75.0% and 80.0%, respectively. The overall K-WARF of the portfolio is 3697, which represents a weighted average portfolio assessment between B- and CCC+. The portfolio presented to KBRA contains exposures to 38 obligors with approximately 75.2% of the par exposed to RRLs. The transaction has an approximate 0.75-year reinvestment period during which the initial portfolio may experience turnover through trading and substitution.

KBRA’s ratings on the Class A and Class B Notes consider timely payment of interest and ultimate payment of principal by the applicable stated maturity date, and KBRA’s ratings on the Class C and Class D Notes consider ultimate payment of interest and principal by the applicable stated maturity date.

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Methodologies

• Structured Credit: Structured Credit Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003250

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