Ares European CLO IX BV: 08 April 2018
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 Ares European Loan Management LLP.
Eligibility criteria (includes): it is a Secured Senior Loan, a Secured Senior Bond, a Corporate Rescue Loan, an Unsecured Senior Loan, a Mezzanine Obligation, a Second Lien Loan or a High Yield Bond; it is not a Defaulted Obligation or a Credit Risk Obligation; it is not a lease; it is not a Structured Finance Security, a letter of credit, a Synthetic Security or a Participation of a Participation; it is not a Zero Coupon Security, Step-Up Coupon Security or Step-Down Coupon Security; it has an 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); it is not a Project Finance Loan; it has a minimum purchase price of 60 per cent of the Principal Balance of such Collateral Obligation.
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 €320mln, which is approximately 80.0% of the Target Par Amount.
CRR 405: The Collateral Manager (Ares European Loan Management LLP), in its capacity as Retention Holder will hold the Retention Notes in its capacity as sponsor for the purposes of the EU Retention Requirements, and will undertake to retain a material net economic interest in the first loss tranche of not less than 5% of the nominal value of the securitised exposures through the purchase and retention of Subordinated Notes with an original Principal Amount Outstanding equal to or greater than 5% of the greater of the Target Par Amount and the Collateral Principal Amount on the relevant date of determination.
US Risk Retention: As of the date of the Prospectus, it is likely that none of the Collateral Manager or its affiliates will be required to comply with the U.S. Risk Retention Rules with respect to this transaction either before the Issue Date or shortly thereafter.