Axesor Rating has assigned a rating to Alhambra SME Funding 2019-1DAC, a €274.98M CLO secured by a portfolio of loans to Spanish middle market companies. This is the debut CLO transaction in the Spanish middle market asset class that facilitates institutional funding to 48 mid-sized Spanish companies across a diversified range of sectors.
The loans have been originated by Be-Spoke Capital since September 2017 targeting SME borrowers with sales greater than €20m and EBITDA of at least €2m.
This funding vehicle provides middle market Spanish companies with access to term funding (average remaining tenor of 4,28 yrs.), in a context where, although liquidity is abundant, long term funding is scarce.
Axesor Rating has assigned provisional ratings of AAA(sf) to the Class A notes, AA+(sf) to the Class B notes and BB+(sf) to the Class C notes. The remaining classes were not rated.