Sound Point Euro CLO II Funding: 02 September 2019
The assets securing the Notes will consist primarily of a portfolio of Senior Loans, Senior Secured Bonds, Mezzanine Obligations and High Yield Bonds and will be managed by Sound Point CLO C-MOA LLC, acting through its Management Series.
Eligibility criteria (includes): it is a Senior Secured Loan, a Senior Secured Bond, an Unsecured Senior Loan, a Mezzanine Obligation, a Second Lien Loan, a Corporate Rescue Loan, or a High Yield Bond; it is not a Defaulted Obligation or a Credit Impaired Obligation; it is not a Structured Finance Security, letter of credit or a Synthetic Security; it is not a Zero Coupon Security; other than in the case of a Corporate Rescue Loan, it has an Fitch Rating of not lower than “CCC” and a Moody’s Rating of not lower than “Caa3”; it is an obligation in respect of which the Obligor (or the guarantor of such obligation) is Domiciled in a Qualifying Country, as determined by the Collateral Manager; it is not a Project Finance Loan; it is not a Step-Down Coupon Security; it shall have been acquired by the Issuer for a purchase price of not less than 60.0% of the par value thereof.
The Issuer anticipates that, by the Issue Date, it or the Collateral Manager on its behalf will have purchased or committed to purchase Collateral Debt Obligations the Aggregate Principal Balance of which is equal to at least €300mln, which is approximately 75% of the Target Par Amount.
The Notes (other than the Retention Notes) are being offered on the Issue Date by the Issuer through Credit Suisse Securities (Europe) Limited in its capacity as initial purchaser of the offering of such Notes subject to prior sale.
EU Risk Retention: Under the Risk Retention Letter the Retention Holder (Sound Point CLO C-MOA) will undertake, in accordance with the EU Retention Requirements in force as at the Issue Date, to subscribe for and retain on an ongoing basis for so long as any Class of Notes remains outstanding Subordinated Notes with a Principal Amount Outstanding equal to not less than 5% of the Aggregate Collateral Balance pursuant to paragraph 3(d) of Article 6 of the Securitisation Regulation.
US Risk Retention: Based on the LSTA Decision, it should be assumed by each prospective investor that no party involved in the transaction will obtain on the Issue Date and retain any Notes intended to satisfy the U.S. Risk Retention Rules.