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KBRA Assigns Preliminary Rating to Gracie Point International Premium Funding 2017-I, Series 2018-A Notes (Draw No. 2)

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Kroll Bond Rating Agency (KBRA) assigns preliminary rating to the Series
2018-A, Class I Notes (Draw No. 2) issued by Gracie
Point International Premium Funding 2017-I, Series 2018-A Notes (Draw
No. 2)
.

The rating listed below is for $14,497,000 of the Gracie Point
International Premium Funding 2017-I, Series 2018-A Notes, Class I Notes
draw number 2 (the "Draw No. 2 Notes"). In addition, the rating for the
previously issued $13,905,000 Series 2018-A Notes, Class I Notes (the
"Draw No. 1 Notes") will be confirmed in conjunction with the issuance
of the Draw No. 2 Notes. The rating listed below for the Draw No. 2
Notes is preliminary and subsequent information may result in the
assignment of a final rating that differs from the preliminary ratings.
The rating for the Draw No. 1 Notes are final. KBRA will provide a
rating on only the Class I Notes. This report does not constitute a
recommendation to buy, hold, or sell securities. KBRA rating represents
the timely payment of interest and ultimate payment of principal of the
Class I Notes by the Stated Maturity Date. KBRA's complete analysis
including a discussion of Key Credit Considerations is included in Gracie
Point International Premium Funding 2017-I, Series 2018-A
.

This transaction is part of Gracie Point, LLC's ("Gracie Point", the
"Company" or the "Sponsor") third securitization. The Company has
completed a total of four securitizations. Gracie Point International
Premium Funding 2017-I (the "Issuer") will issue the Series 2018-A Multi
Draw Notes (the "Series 2018-A Notes") in two classes: Class I ("Class I
Notes") and Class II ("Class II Notes", jointly referred to as the
"Notes"). The Issuer previously issued the Draw No. 1 Notes on April 5,
2018 (the "Draw No. 1 Closing Date") and additional information can be
found in the report located here.
The Draw No. 2 Notes will have the same terms as the Draw No. 1 Notes,
including same Note Rate, Maximum Advance Rate and Stated Maturity Date.
The Issuer will issue the Draw No. 2 Notes only in one class: the Class
I Notes.

After the Draw No. 2 Notes are issued the balance of Class I Notes will
be $28,402,000 and additional Class I Notes may be subsequently offered
periodically (each, a "Draw") pursuant to an addendum up to a maximum
amount of $100,000,000 if certain condition precedents are met. On the
Draw No. 1 Closing Date, the Issuer issued the full amount of $2,500,000
of the Class II Notes, which Gracie Point will retain. No additional
Class II Notes will be issued. The unrated Class II Notes are fully
subordinated to the rated Class I Notes.

Proceeds of the Notes will be used to purchase participation interests
("Participations") in premium finance loans (each, a "Premium Finance
Loan") made by Gracie Point International, Limited (the "Premium Finance
Lender"), to British Virgin Islands exempted companies limited by shares
(each, an "Eligible Premium Finance Borrower" or "Borrower"). The Series
2018-A Reserve Account was previously funded on the Draw No. 1 Closing
Date with $500,000 to support payments on capped administrative expenses
and interest and principal payments on the Class I Notes. All Borrowers
will be formed to ensure that such Borrowers are bankruptcy remote.
Gracie Point is the sole equity owner of the Premium Finance Lender
(which in turn is the sole equity owner of the Issuer), and will serve
as the administrator of the Premium Finance Loans.

The Class I Notes will be secured by a portfolio of 13 Premium Finance
Loans to Eligible Premium Finance Borrowers with four life insurance
companies. Each Premium Finance Loan will be at least 100%
collateralized by a combination of (i) one or more life insurance
policies issued by eligible life insurance carriers (each, an "Eligible
Life Insurance Company") having a minimum cash surrender value ("CSV")
and (ii) cash, if needed. Each Eligible Life Insurance Company has
minimum ratings guidelines, as described in the report located here.
In addition, each Borrower is required to reserve three months of
accrued and unpaid interest on such Premium Finance Loan plus six months
of forward interest on such Premium Finance Loan. The 13 Premium Finance
Loans with four Eligible Life Insurance Company have a current aggregate
premium finance loan amount of $30,452,377.

The Notes have an expected maturity date (the "Expected Maturity Date")
of September 2, 2019, and a stated maturity date (the "Stated Maturity
Date") of March 1, 2020, which is approximately 6 months after the
Expected Maturity Date. The initial issuance date was the Draw No. 1
Closing Date and subsequent issuance dates can occur throughout the
issuance period (the "Issuance Period") which ends twelve months after
the Draw No. 1 Closing Date. If principal collections are received by
the Issuer during the Issuance Period and such principal collections are
applied on any payment date to repay principal on the Class I Notes,
then the Issuance Period will end on such payment date or reserved to
purchase additional Participations.

Although the Premium Finance Loans have tenors as long as 20 years, the
Issuer should have sufficient funds to repay the principal on the Notes
at the Stated Maturity Date because, to the extent the Premium Finance
Lender is unable to refinance the Premium Finance Loans prior to the
Notes' Expected Maturity Date, the Premium Finance Lender have the
right, pursuant to the loan documents with the Borrowers, to demand
payment on, and take possession of the collateral related to, the
Premium Finance Loans.

The Premium Finance Loans accrue interest at either the 3-month LIBOR or
1-month LIBOR rate plus an applicable spread and the Notes accrue
interest at the 3-month LIBOR rate plus an applicable spread. It is also
possible the Premium Finance Loans and Notes may reset on different days
during the quarter. In order to mitigate any potential mismatch between
1-month LIBOR on the Premium Finance Loans and 3-month LIBOR on the
Notes or potential mismatch between 3-month LIBOR rates on the assets
and liabilities and any other risks relating to timely payment of
interest on the underlying Premium Finance Loans, the Sponsor has
deposited $500,000 into a reserve account (the "Series 2018-A Reserve
Account") on the Draw No. 1 Closing Date which will be available to pay
interest on the Notes in the event of an interest shortfall and capped
administrative expenses which are paid senior to interest payments on
the Class I Notes. For any future Draw or purchase of a Participation,
the transaction includes an Additional Interest Reserve Requirement
detailed in the report located here.

KBRA analyzed the transaction using the Global
General Rating Methodology for Asset-Backed Securities
published
on November 28, 2017 and Global
Insurer & Insurance Holding Company Rating Methodology

published on October 10, 2017.

For complete details on the analysis, please see KBRA's pre-sale report, Gracie
Point International Premium Funding 2017-I, Series 2018-A Notes (Draw
No. 2) Pre-Sale Report
, which was published today at www.kbra.com.

The preliminary rating is based on information known to KBRA at the time
of this publication. Information received subsequent to this release
could result in the assignment of a final rating that differ from the
preliminary rating.

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC Rule 17g-7, to provide a description of a transaction's
representations, warranties and enforcement mechanisms that are
available to investors when issuing credit ratings. KBRA's disclosure
for this transaction can be found in the report available Gracie
Point International Premium Funding 2017-I, Series 2018-A
Representations and Warranties Disclosure
.

Related Publications: (available
at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. 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, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.

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