Palmer Square European CLO 2021-1: 19 March 2021
The assets securing the Notes will consist of a portfolio of primarily Senior Obligations, Mezzanine Obligations and High Yield Bonds, and will be managed by Palmer Square Europe Capital Management LLC.
Eligibility criteria (includes): it is a Secured Senior Obligation, a Corporate Rescue Loan, an Unsecured Senior Obligation, a Mezzanine Obligation, a Second Lien Loan or a High Yield Bond (in each case, which is not a sub-participation of a sub-participation); it is not a Defaulted Obligation or a Credit Risk Obligation; it is not a Structured Finance Security or a Synthetic Security; it is not a Zero Coupon Security or Step-Up Coupon Security; other than in the case of a Corporate Rescue Loan, it has an S&P Rating of not lower than "CCC" and a Moody's Rating of not lower than "Caa2"; 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 is not a Bridge Loan; it has a minimum purchase price of 60% 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 €332.5mln, which is approximately 95% of the Target Par Amount.
The Notes are being issued at a maximum issue price of 100% of the principal amount thereof. The Notes are being offered by the Issuer through J.P. Morgan Securities plc in its capacity as placement agent.
EU & UK Risk Retention: The Retention Holder (Palmer Square Europe Capital Management LLC) will undertake to purchase and retain, for its own account and for so long as any Notes are outstanding, Subordinated Notes with an aggregate purchase price as of the Issue Date equal to or greater than 5% of the Collateral Principal Amount.