KBRA Assigns Preliminary Ratings to SEB Funding LLC, Series 2024-1

KBRA Assigns Preliminary Ratings to SEB Funding LLC, Series 2024-1

New York, March 11, 2024(BUSINESS WIRE)– KBRA assigns preliminary ratings on two classes of notes for SEB Funding LLC (Issuer), Series 2024-1 (SEB 2024-1), a full-service securitization. SEB 2024-1 represents the second securitization of the issuer from the Master Trust. The Series 2021-1 transaction (the existing notes) and the Series 2024-1 transaction (together with the existing notes and notes) share the same collateral pool. Furthermore, Orangetheory Fitness (OTF) is expected to contribute additional guarantees following the expected merger between SEB and OTF (business combination). On the Series 2024-1 Closing Date, the Series 2024-1 Class A-1 VFN Notes will be undrawn (and will not be withdrawable until the Business Combination successfully closes) and the proceeds from the issuance of the Series 2024-1 Class A-2 Notes will be held in an account. Security. If the business combination does not close successfully within the specified time period, the Series 2024-1 Class A-1-VFN Notes will automatically terminate and amounts of the Series A-2 Notes held in escrow will be used to repay the Series 2024-1 holders of the Class A Notes. -2 in full.

KBRA has reanalyzed the existing observations in conjunction with the release of Series 1-2024. Ratings are placed on Watch Upgrade. If the business combination closes as expected, KBRA expects that the ratings will be upgraded by one notch due to the additional cash flow and increased system scope from the OTF integration.

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Disclosures

More information on key credit considerations, sensitivity analyzes that take into account factors that can affect these credit ratings and how they could lead to a rating upgrade or downgrade, and ESG factors (where they are a key driver behind a change in credit rating or rating outlook) can be provided. Find them in the full evaluation report referenced above.

A description of all material sources that have been used to prepare the credit rating and information on the methodology(ies) (including any material models and sensitivity analyzes of the relevant key rating assumptions, as applicable) used in determining the credit rating is provided. In the information disclosure form(s) found here.

Information about the meaning of each rating category can be found here.

Further disclosures regarding this rating action are available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, rating scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the US 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, the 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.

Document number: 1003463

View source version on Businesswire.com: https://www.businesswire.com/news/home/20240311683224/en/

Contacts

Analytical communications

Anna Roginkin, Director (Lead Analyst)
+1 646-731-1212
anna.roginkin@kbra.com

Shilon Chen, General Manager
+1 646-731-2431
xilun.chen@kbra.com

Thomas Pearl Carman, Associate
+1 646-731-1241
thomas.carman@kbra.com

Eric Thompson, SMD, Global Head of Structured Finance Ratings (Chairman of Ratings Committee)
+1 646-731-2355
eric.thompson@kbra.com

Contact business development

Ariel Smelkinson, Senior Director
+1 646-731-2369
arielle.smelkinson@kbra.com

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