A private credit fund manager refinanced an asset-based lending facility into a variable funding note securitization and needed a model built around the new structure’s terms. Oak Branch modeled the transaction and built the ongoing reporting required by every party involved in the securitization.
Oak Branch Advisors had previously provided borrowing base calculations for the facility. After the shift to a variable funding note structure, the model was expanded to reflect updated borrowing base mechanics, a new distribution waterfall, and amortization triggers, and to generate trustee-style monthly reporting aligned with public and private securitizations.
Oak Branch reviewed the new transaction documents and extracted the key terms and conditions needed to update the model, building it out in PCS/1. A multi-page report was added covering the distribution summary and waterfall, the available asset amount calculation, relevant cash account activity, trigger status, and a reconciliation of the eligible receivable balance over time.
On an ongoing basis, our team reviews all new collateral to perform eligibility and concentration testing at least weekly, keeping the manager in compliance with the securitization’s deal terms.
The manager gained a securitization model built specifically around its new structure, with ongoing reporting distributed to every key party, including investors, the trustee, the auditor, and a rating agency, along with continued support across the life of the transaction.
PCS/1 integrates with multiple modeling platforms. For this client we used two independent platforms to meet the quality control demands of a complex structure.
Monthly reports mirror the format and detail typically produced by trustees in public and private securitizations.
New collateral is tested against deal terms at least weekly to catch compliance issues early.
This approach fits fund managers refinancing asset-based facilities into securitized structures, particularly variable funding notes, where the reporting and testing obligations differ meaningfully from a standard credit facility.
Modeling an asset-based facility’s move into a variable funding note securitization, with trustee-style monthly reporting.
Eligibility and concentration tests are run at least weekly to ensure ongoing compliance with the deal’s terms.
Reporting is distributed to all key parties to the transaction, including investors, the trustee, the auditor, and the rating agency.
