RRE 6 Loan Management DAC: 06 March 2021
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.
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 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); it is not a Project Finance Loan; it has a minimum purchase price of 60.0% of its Principal Balance.
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 €390mln.
The Notes will be issued at a maximum issue price of 100% of the principal amount thereof. The Notes are being offered by the Issuer through Citigroup Global Markets Limited in its capacity as arranger and placement agent.
EU & UK Risk Retention: On the Issue Date, the Retention Holder (Redding Ridge Asset Management (UK) LLP) agrees to acquire and retain on an ongoing 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/UK Retention Requirements as they apply as at the Issue Date.
US Risk Retention: The LSTA Decision held that collateral managers of "open market CLOs" are not "securitizers" or "sponsors" under Section 941 of the Dodd-Frank Act and, therefore, are not subject to risk retention and do not have to comply with the U.S. Risk Retention Rules. Accordingly, the Collateral Manager will not retain the Minimum Risk Retention Requirement pursuant to the U.S. Risk Retention Rules.