RRE 5 Loan Management DAC: 23 October 2020
The assets securing the Notes will consist of a portfolio of primarily Senior Loans, Secured Senior Bonds, Mezzanine Obligations, Second Lien Loans 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, in turn, is a wholly-owned subsidiary of Redding Ridge Holdings LP. Redding Ridge 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 Zero Coupon Security; it has an S&P Rating of not lower than “CCC-” or a Moody’s Rating of not lower than “Caa3”; 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).
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 at least €390mln. The Re-investment period ends on 15 October 2023.
The Notes are being offered by the Issuer through Credit Suisse Securities (Europe) Limited in its capacity as sole arranger, initial purchaser and a co-placement agent, and by Merrill Lynch International in its capacity as a co-placement agent.
EU Risk Retention: Redding Ridge Asset Management (UK) LLP shall act as Retention Holder for the purposes of the EU Retention and Transparency Requirements and, on the Issue Date, shall commit to acquire and retain on an on-going basis a material net economic interest in the first loss tranche 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 Requirements as they apply as at the Issue Date.
US Risk Retention: As per the LSTA Decision, the Collateral Manager will not retain the Minimum Risk Retention Requirement pursuant to the U.S. Risk Retention Rules.