KBRA Assigns Preliminary Ratings to Crescendo Royalty Funding LP

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to one class of notes issued by Crescendo Royalty Funding LP (“Crescendo”), a music royalty ABS transaction.

This transaction is Northleaf Capital Partners’ first music royalty securitization. The proceeds will be used to repay the Issuer’s existing financing, pay transaction fees and expenses, and fund transaction accounts. An independent third-party valuation firm has valued the Catalog at $467.4 million. This valuation does not give any credit to revenue generated by name, image, and likeness (NIL) rights. The Catalog income is composed of publishing rights, sound recording rights, futures, and administration rights.

The transaction has only one class of Notes. The Notes pay interest on a quarterly basis and are not scheduled to pay down principal prior to the anticipated repayment date (ARD) in five years (December 2026). Prior to the ARD, the only required principal is to maintain compliance with the borrowing base which is a function of the Notes’ advance rate and the collateral value derived from the present value of the valuation agent’s annually updated valuation.

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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.

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.

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.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. 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 pursuant to the Temporary Registration Regime. 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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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