Contego CLO VII: 18 November 2019
The assets securing the Notes will primarily consist of a portfolio of Secured Senior Loans, Secured Senior Bonds, Unsecured Senior Obligations, Mezzanine Obligations, Second Lien Loans, Corporate Rescue Loans and High Yield Bonds and will be managed by Five Arrows Managers LLP, a Rothschild & Co group company and a wholly owned indirect subsidiary of Rothschild & Co SCA.
Eligibility criteria (includes): it is a Secured Senior Loan, a Secured Senior Bond, 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 Defaulted Obligation, a Credit Risk Obligation or Equity Security, including any obligation convertible into an Equity Security; it is not a lease; other than in the case of Corporate Rescue Loans, it is an obligation which has an S&P Rating of "CCC" or higher and a Fitch Rating of "CCC" or higher; it 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; the minimum purchase price of the Collateral Obligation is 60.0% of the Principal Balance of such Collateral 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 €417mln, which is approximately 92.7% of the Target Par Amount.
The Notes are being offered by the Issuer through Morgan Stanley & Co. International plc in its capacity as initial purchaser of the Notes, subject to prior sale.
EU Risk Retention: On the Issue Date, the Retention Holder (Five Arrows Global Loan Investments plc) will agree and undertake to acquire and retain the Retention Notes with the intention of complying with the EU Retention and Transparency Requirements.
US Risk Retention: The Retention Holder will acquire the Subordinated Notes on or prior to the Issue Date in an aggregate amount which will be equal to at least 5% of the "fair value" (as defined in the U.S. Risk Retention Rules) of all of the Notes as of the Issue Date.