GLG Euro CLO IV Limited: 25 March 2018
The assets securing the notes will consist predominantly of a portfolio of Secured Senior Loans, Secured Senior Bonds, Unsecured Senior Obligations, Mezzanine Obligations, High Yield Bonds, Corporate Rescue Loans and Second Lien Loans, and will be managed by GLG Partners LP.
The Investment Manager is an indirect wholly-owned subsidiary of Man Group plc and acts in a similar role as investment manager to four CLO transactions: RMF CDO V PLC; GLG Euro CLO I D.A.C; GLG Euro CLO II D.A.C; and GLG Euro CLO III D.A.C.
Eligibility criteria (includes): it is a Secured Senior Loan, a Secured Senior Bond, a Corporate Rescue Loan, an Unsecured Senior Obligation, a Mezzanine Obligation, a Second Lien Loan or a High Yield Bond; it is not a lease; it is not a Structured Finance Security, a pre-funded letter of credit 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 Default Probability Rating of not lower than “Caa3” (in each case unless it is a Corporate Rescue Loan); it is not a Project Finance Loan.
The Issuer anticipates that, by the Issue Date, the Investment Manager on its behalf will have purchased or committed to purchase Collateral Debt Obligations, the Aggregate Principal Balance of which will equal or exceed approximately €245mln, representing approximately 70.00% of the Target Par Amount.
The Notes will be offered by the Issuer through Credit Suisse Securities (Europe) Limited in its capacity as Initial Purchaser of the offering of such Notes.
CRR 405: The Investment Manager shall act as Retention Holder for the purposes of the EU Retention Requirements and shall undertake to acquire on the Issue Date and hold, on an ongoing basis for so long as any Class of Notes remains outstanding, a net economic interest of at least 5% of the nominal value of each Class of Notes in accordance with the EU Retention Requirements.
U.S. Retention Interest: The Retention Holder expects to acquire on the Issue Date an EVI in the form of at least 5% of the initial principal amount of each Class of Notes (where for such purpose the Class A-1 Notes, the Class A-2 Notes, the Class B-1 Notes and the Class B-2 Notes shall be considered separate Classes of Notes) and will, to the extent required by applicable law, retain the Retention Notes as long as required by the U.S. Risk Retention Period.