Contego CLO VI: 04 December 2018
The assets securing the Notes will primarily consist of a portfolio of Secured Senior Loans, Secured Senior Bonds, Unsecured Senior Obligations, Mezzanine Obligations, Second Lien Loans, Corporate Rescue Loans and High Yield Bonds, and will be managed by Five Arrows Managers LLP, a Rothschild & Co group company and a wholly owned indirect subsidiary of Rothschild & Co SCA.
The Collateral Manager is Five Arrows Managers LLP which is a Rothschild & Co. Group company. Rothschild & Co Credit Management (Europe) (R&CoCM) is part of the Merchant Banking Division of the Rothschild & Co Group and it undertakes its asset management activities through the legal entity of Five Arrows Managers LLP. As of 31 December 2017, Rothschild & Co's Global Advisory division was ranked first globally by number of M&A transactions. The Merchant Banking division managed €7.5bn of funds globally across debt and equity funds, while the Wealth and Asset Management division had €66bn of assets under management globally.
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 Structured Finance Security or a Synthetic Security; it is not a Defaulted Obligation, a Credit Risk Obligation or Equity Security, including any obligation convertible into an Equity Security; it is not a Zero Coupon Obligation; other than in the case of Corporate Rescue Loans, it is an obligation which has a Moody's Rating of "Caa3" or higher and a Fitch Rating of "CCC" or higher; it is not a Project Finance Loan; it is not a Step-Down Coupon Obligation; the minimum purchase price of the Collateral Obligation is 65.0% of the Principal Balance of such Collateral Obligation.
The Issuer anticipates that, by the Issue Date, it will have purchased or committed to purchase Collateral Obligations the Aggregate Principal Balance of which is equal to at least €361.5mln, which is approximately 90.0% of the Target Par Amount.
The Notes (other than the Retention Notes) are being offered by the Issuer through Merrill Lynch International in its capacity as initial purchaser of the Notes subject to prior sale.
EU Risk Retention: The Collateral Manager (Rothschild & Co SCA) will act as retention holder for the purposes of the EU Retention Requirements and will undertake to acquire on the Issue Date and hold on an on-going basis for so long as any Class of Notes remains outstanding a material net economic interest of not less than 5% of the Principal Amount Outstanding of each Class of Notes then outstanding within the meaning of paragraph 1(a) of Article 405 of the CRR, Article 51(1)(a) of the AIFM Regulation and paragraph 2(a) of Article 254 and Article 256 of Commission Delegated Regulation (EU) 2015/35 .
US Risk Retention: Neither the Collateral Manager, the Initial Purchaser nor any of the other transaction parties provides any assurances regarding, or assumes any responsibility for, compliance with the U.S. Risk Retention Rules prior to, on or after the Issue Date.