KBRA assigns preliminary ratings to four classes of debt issued by Golub Capital Partners ABS Funding 2024-2 ("GCPAF 2024-2"), a securitization backed by a portfolio of recurring revenue and middle market corporate loans.

GCPAF 2024-2 is a loan securitization managed by GC Investment Management LLC (“GCIM” or the “Collateral Manager”), an investment adviser and affiliate of GC Advisors LLC (collectively, with these affiliates and other funds managed by them and their affiliates “Golub Capital”). The securitization consists of $227.5 million Class A notes, $31.5 million Class B notes (collectively the “Notes”), and $91.0 million Subordinated Notes, which expect to receive payments from the portfolio of recurring revenue loans (“RRLs”) and middle market loans (“MMLs”). Proceeds from the issuance of the notes will be used to purchase assets (approximately $350.0 million).

This is Golub Capital’s tenth 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. Golub Capital 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 rated notes benefit from internal credit enhancement through subordination, borrowing base, and excess spread. The Class A and B Notes have a 65.0% and 74.0% advance rate respectively and are expected to receive timely interest and ultimate principal under KBRA’s rating scenarios. KBRA determined a credit assessment for each asset in the initial portfolio. At closing, the portfolio is expected to have a K-WARF of 3492, which equates to a weighted average assessment between B- and CCC+. The overall credit quality of RRLs, which account for 69.4% of the portfolio, is generally lower than that of traditional MMLs.

Kroll Bond Rating Agency’s (KBRA) ratings on the Class A-1, Class A-2 (collectively, “Class A”), Class B-1, and Class B-2 Notes (collectively, “Class B”) consider the timely payment of interest and ultimate payment of principal by the applicable stated maturity date. KBRA’s analysis as presented herein assumes the Class B Notes are floating. KBRA’s analysis also considered fixed-rate Class B Notes.

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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: 1005161

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