NEW YORK--(BUSINESS WIRE)--KBRA assigns a preliminary rating to four classes of notes issued by Gracie Point International Funding 2023-1, LLC, Series 2023-1.
Gracie Point, formed in February 2010, is in the business of financing life insurance policy premium payments. Gracie Point’s clients are high net worth individuals, procuring or having procured life insurance for estate planning or business purposes.
This transaction is secured by a special unit of beneficial ownership interest (“SUBI”) of Gracie Point Collateral Trust (the “Collateral Trust”). The Collateral Trust holds participations in premium finance loans (the “Premium Finance Loans”) and a portion or all of the beneficial interest in certain participations held by the Collateral Trust will be allocated to the SUBI held by the Issuer. The Premium Finance Loans are made by a premium finance lender (“Premium Finance Lender”) to an eligible finance borrower (“Eligible Finance Borrower” or “Borrower”). The Premium Finance Lender is a wholly-owned subsidiary of Gracie Point. Each Premium Finance Loan will be at least 100% collateralized by a combination of (i) a life insurance policy issued by an eligible life insurance carrier (each, an “Eligible Life Insurance Company”) having a minimum cash surrender value (“CSV”), (ii) cash, if needed and (iii) a letter of credit from an eligible letter of credit provider, if needed. Each Eligible Finance Borrower of a Premium Finance Loan is required to reserve one collection period of accrued and unpaid interest plus the surrender period (typically six months) of forward interest on such Premium Finance Loan.
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Related Publications
- General Global Rating Methodology for Asset-Backed Securities
- 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.
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