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Penta CLO 5: 23 December 2018

As the name suggests, this will be the fifth CLO transaction to bear the Penta name, the first having been issued in 2007, where again the assets securing the notes will consist of a portfolio of primarily Senior Obligations, Mezzanine Obligations and High Yield Bonds and will be managed by Partners Group (UK) Management Ltd.

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 Structured Finance Security or a Synthetic Security; it is not a lease; it is not a Zero Coupon Security, Step-Up Coupon Security or Step-Down Coupon Security; it is not a debt obligation which pays interest only and does not require the repayment of principal; it is not a Project Finance Loan; it is not a First Lien Last Out Loan; 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 has a purchase price of not less than 65.0% of the Principal Balance of such 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 €280mln, which is approximately 70.0% of the Target Par Amount.

The Notes are being offered by the Issuer through JP Morgan in its capacity as initial purchaser of the offering of the Notes.

EU Risk Retention: In accordance with the EU Retention Requirements, the Originator will undertake ... that .... on the Issue Date, it will acquire and hold on an ongoing basis for so long as any Class of Notes remains Outstanding, Subordinated Notes with an aggregate purchase price representing equal to or greater than 5.0% of the Collateral Principal Amount

US Risk Retention: Each of the Collateral Manager and the Originator has informed the Issuer that it does not intend to purchase or retain Notes for the purposes of satisfying the U.S. Risk Retention Rules and, instead, each of the Collateral Manager and the Originator has informed the Issuer that it intends to use the “Safe harbor for certain foreign related transactions” contained in Section __.20 of the U.S. Risk Retention Rules.