Contego CLO VI (Refinance): 18 April 2021
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 group company and a wholly owned indirect subsidiary of N.M. Rothschild & Sons Limited.
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 (unless such purchase or acquisition is being made as part of a Bankruptcy Exchange Transaction); other than in the case of Corporate Rescue Loans, it is an obligation which has a Moody's Rating of "Caa3" 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; it is not a Step-Down Coupon Obligation; 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 €397.621mln, which is approximately 99.41% of the Target Par Amount.
The Notes (other than the Retention Notes) are being offered through Morgan Stanley & Co. International plc in its capacity as initial purchaser of the Notes subject to prior sale.
EU & UK Risk Retention: The Collateral Manager will act as retention holder and will undertake to acquire on the Issue Date and hold on an ongoing basis, for so long as any Class of Notes remains outstanding, a material net economic interest of not less than 5% of the Principal Amount Outstanding of each Class of Notes then outstanding.
US Risk Retention: Based on the LSTA Decision it should be assumed that no party involved in the transaction will obtain on the Issue Date and retain any Notes intended to satisfy the U.S. Risk Retention Rules.