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Black Diamond CLO 2017-2 Designated Activity Co: 24 December 2017

The assets securing the Notes will consist primarily of a portfolio of Senior Obligations, Mezzanine Obligations and High Yield Bonds and will be managed by Black Diamond CLO 2017-2 Adviser, L.L.C., an investment management affiliate of Black Diamond Capital Management L.L.C.

BDCM is a privately held alternative asset management firm with approximately $6.6 billion in assets under management as of 31 December 2016. BDCM was formed in 1995 and currently manages CLOs and other structured vehicles, distressed control private equity funds, mezzanine loan funds and a credit-oriented hedge fund.

Eligibility criteria (includes): it is a Secured Senior Obligation, a Corporate Rescue Loan, an Unsecured Senior Obligation, a Mezzanine Obligation, a Second Lien Loan or a High Yield Bond; it is not a Defaulted Obligation or a Credit Risk Obligation (unless such Defaulted Obligation is being acquired in an Exchange Transaction); it is not a lease; it is not a Structured Finance Security or a Synthetic Security; it is not a Zero Coupon Security; it has a S&P Rating of not lower than “CCC-” and a Moody’s Rating of not lower than “Caa3”; is an obligation of an Obligor or Obligors Domiciled in a Non-Emerging Market Country (as determined by the Collateral Manager acting on behalf of the Issuer).

The Issuer anticipates that, by the Issue Date, it, or the Collateral Manager on its behalf, will have purchased or committed to purchase Collateral Obligations the Aggregate Principal Balance of which is equal to at least €200mln and $75mln, which is approximately 66% of the Target Par Amount.

CRR 405: In accordance with the EU Retention Requirements, Black Diamond Commercial Finance, L.L.C., in its capacity as Originator, will undertake to retain a material net economic interest of not less than 5% of the nominal value of the securitised exposures in accordance with the CRR Retention Requirements, the AIFMD Retention Requirements and the Solvency II Retention Requirements, by subscribing for and holding, on an ongoing basis, and for so long as any Notes are Outstanding (i) Class M-1 Subordinated Notes with a Principal Amount Outstanding as of the Issue Date equal to not less than 5% of the Collateral Principal Amount and (ii) Class M-2 Subordinated Notes with a Principal Amount Outstanding as of the Issue Date equal to not less 5% of the Collateral Principal Amount.

US Risk Retention: It is expected that a “majority-owned affiliate” (as defined in the U.S. Risk Retention Rules) of the Collateral Manager, in its capacity as the Retention Holder, will purchase the Retention Interest on the Issue Date.