RRE 2 Loan Management DAC: 30 June 2019
This will be the second transaction under the RRE name in the last three months, and once again the assets securing the Notes will consist of a portfolio of primarily Senior Loans, Secured Senior Bonds, Mezzanine Obligations and High Yield Bonds, and will be managed by Redding Ridge Asset Management (UK) LLP. The Collateral Manager is an indirect wholly-owned subsidiary of Redding Ridge Asset Management LLC, which was founded in 2016 and is a global asset management business.
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 (in each case, which is not a Participation of a Participation); it is not a Defaulted Obligation, a Credit Risk Obligation or Equity Security, including any obligation convertible into an Equity Security (other than at the Issuer’s option); it is not a Structured Finance Security, letter of credit 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 has an S&P Rating of not lower than “CCC-” and a Moody’s Rating of not lower than “Caa3”; it is not a Project Finance Loan; it is not a Bridge Loan.
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 approximately €360mln, representing approximately 90.0% of the Target Par Amount.
The Notes are being offered by the Issuer through Citigroup Global Markets Limited London Branch in its capacity as placement agent of the offering of such Notes, subject to prior sale.
EU Risk Retention: the Retention Holder (Redding Ridge Asset Management (UK) LLP) shall, on the Issue Date, acquire and retain on an on-going basis a material net economic interest in the first loss tranche (as such term is defined in the Securitisation Regulation) by way of holding Subordinated Notes with an aggregate Principal Amount Outstanding, at any time, of not less than 5% of the Collateral Principal Amount for the purposes of complying with the EU Retention and Transparency Requirements as they apply as at the Issue Date.
US Risk Retention: the Collateral Manager will not retain the Minimum Risk Retention Requirement pursuant to the U.S. Risk Retention Rules provided, however, that the Collateral Manager in its capacity as Retention Holder will retain the Retention Notes on the Issue Date with the intention of complying with the EU Retention and Transparency Requirements.