Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to the Secured Fund Fee Revenue Notes Series 2021-1 issued by DigitalBridge Issuer, LLC and DigitalBridge Co-Issuer, LLC. The Notes will be secured by digital investment management fees and carried interest from current and future investment vehicles managed by DigitalBridge Group, Inc. (“DigitalBridge” and formerly known as “Digital Colony” or “Colony Capital, Inc.”) as well as all existing digital balance sheet investments of the Company.
DigitalBridge Group, Inc. is a leading global investment firm with a strategic focus on digital infrastructure investments. As of March 31, 2021, the Company has more than $32 billion of digital AUM consisting of third-party capital investments in digital managed funds, digital operating balance sheet investments, and other digital investment vehicles and equity commitments into the DigitalBridge flagship digital funds.
The rated Notes will be issued in two classes, with the Class A-2 Secured Fund Fee Revenue Notes expected to be drawn in full at closing as well as Class A-1 Variable Funding Notes (VFN) that can be drawn, repaid, and subsequently re-drawn over the transaction’s expected five-year term.
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.
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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.
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