Andalusian Credit Company has entered into a strategic partnership with affiliates of Carlyle Global Credit Investment Management to form Andalusian Credit Rated JV I LLC. The joint venture is designed to invest primarily in middle-market loan assets and other cash-flow-producing private credit interests.
Under the terms of the agreement, the two entities have committed up to an aggregate of $60 million in equity interests. Andalusian Credit Company has committed up to $52.5 million in Class B Interests, making its initial contribution in kind through a portfolio of loans, while Carlyle has committed up to $7.5 million in Class A Interests. Andalusian’s ownership in the venture is capped at 87.5%.
In tandem with the equity commitments, the joint venture issued four classes of delayed draw notes rated by Morningstar DBRS to Carlyle. These include:
- Class A Notes: $115 million initial commitment
- Class B Notes: $8 million initial commitment
- Class C Notes: $12 million initial commitment
- Class D Notes: $5 million initial commitment
The venture will be governed by a four-member board of managers, with Andalusian and Carlyle each designating two representatives. All material investment and operational decisions require the approval of at least one designee from each member. Additionally, Andalusian Credit Partners has been tapped to provide administrative services to the joint venture.
