Barings Euro CLO 2018-3: 30 December 2018
The assets securing the notes will consist of a portfolio of predominantly Secured Senior Obligations, Secured Senior Notes, Unsecured Senior Obligations, Second Lien Loans, Mezzanine Obligations and High Yield Bonds, and will be managed by Barings (U.K.) Limited.
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; it is not a Structured Finance Security, lease, or a Synthetic Security; it is not a Zero Coupon Security, Step-Up Coupon Security or Step-Down Coupon Security; 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; 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 is purchased at a price not less than 65 per cent of the Principal Balance.
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 €320mln which is approximately 80.0% of the Target Par Amount.
The Notes are being offered by the Issuer through Credit Suisse Securities (Europe) Limited in its capacity as initial purchaser of such notes.
EU Risk Retention: The Collateral Manager (Barings (U.K.) Limited) will undertake to purchase (on the Issue Date and on each subsequent date of additional issuances of the Notes) and retain on an ongoing basis, for its own account, a material net economic interest in the transaction comprising not less than 5% of the Principal Amount Outstanding of each Class of Notes 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, for the purposes of compliance with the EU Retention Requirements.