AMMC CLO 21 Ltd: 25 October 2017
The Issuer’s investment portfolio will consist primarily of bank loans and Participation Interests. The portfolio will be managed by American Money Management Corporation.
Eligibility criteria (includes): is US$ denominated and is neither convertible by the obligor thereon or the issuer thereof into, nor payable in, any other currency; is not (A) a Defaulted Obligation or (B) a Credit Risk Obligation; is not a lease or a finance lease; has a Moody’s Rating and an S&P Rating; is not a Related Obligation, a Bridge Loan, a Middle Market Loan or a Structured Finance Obligation; is not a Synthetic Security; is purchased at a price at least equal to 65% of its Principal Balance.
It is expected that as of the Closing Date the Issuer will have purchased (or committed to purchase) Pre-Closing Collateral Obligations with an Aggregate Principal Balance of at least 85% of the Target Initial Par Amount.
CRR 405: None of the Issuer, the Placement Agent, the Collateral Manager or their respective affiliates or any other person has committed or intends to retain a material net economic interest in the securitisation constituted by the issuance of the Notes in accordance with the Retention Requirement or to take any other action which may be required by EEA-regulated investors for the purposes of their compliance with the Retention Requirement, the Due Diligence Requirement or similar requirements.
US Risk Retention: In order to comply with the U.S. Risk Retention Rules, on the Closing Date, two majority-owned affiliates of the Collateral Manager are expected to purchase and retain an “L-shaped interest” consisting of a combination of an eligible horizontal residual interest and an eligible vertical interest. To satisfy such requirement, the Retention Holders will collectively purchase at least 4.30% of the principal amount of each Class of Notes issued on the Closing Date and additional Subordinated Notes in an aggregate amount equal to at least 0.84% of the fair value of all Notes issued by the Issuer on the Closing Date.
The Issuer intends to qualify for the “loan securitization” exclusion set forth in the implementing regulations of the Volcker Rule.