Purple Finance CLO 2: 17 October 2019
The assets securing the notes will consist of a portfolio of primarily Senior Loans, Senior Secured Bonds, Mezzanine Obligations and High Yield Bonds, and will be managed by Ostrum Asset Management.
Ostrum Asset Management is 100% owned by Natixis Investment Managers (formerly known as Natixis Global Asset Management). Natixis IM operates as the holding company for the asset management business of NATIXIS, a global financial services company. Ostrum Asset Management is based in Europe, with a local presence in the United States and Asia. It provides a full range of high-performance active fundamental fixed-income and equity expertise, along with insurance investment management solutions to address investors’ needs worldwide. As of 31 December 2018, the assets under management of Ostrum Asset Management were €258 billion and it had 352 employees.
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, a Current Pay Obligation or a Credit Impaired Obligation; 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; it is not a debt obligation that pays scheduled interest less frequently than annually (other than, for the avoidance of doubt, PIK Securities); it is an obligation in respect of which the Obligor 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; the minimum purchase price of the Collateral Debt Obligation is 60.0% of the Principal Balance of such Collateral Debt Obligation.
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 €240mln, which is approximately 60.0% of the Target Par Amount.
EU Risk Retention : The Retention Holder (Ostrum Asset Management) will represent and undertake to the Issuer, the Trustee, the Collateral Administrator, the Placement Agent and the Sole Arranger in a letter of agreement to acquire and hold the Retention Notes on the terms set out in the EU Risk Retention Letter (please see the prospectus).
US Risk Retention: The Retention Holder will retain the U.S. Retention Interest and such Retention Interest satisfies the requirements for retaining an “eligible horizontal residual interest” in compliance with the U.S. Risk Retention Rules.