Cairn CLO XVII DAC: 24 September 2023
The assets securing the Notes will consist of a portfolio of primarily Senior Loans, Senior Secured Bonds, Mezzanine Obligations and High Yield Bonds managed by Cairn Loan Investments II LLP (the Investment Manager).
Eligibility criteria (includes): it is a Senior Secured Loan, a Senior Secured Bond, an Unsecured Senior Loan, a Mezzanine Obligation, a Second Lien Loan or a High Yield Bond; other than a Corporate Rescue Loan, it is not a Defaulted Obligation or a Credit Impaired Obligation; it is not a Structured Finance Security, pre-funded letter of credit or a Synthetic Security; it is not a lease; it is not a Zero Coupon Security; other than in the case of a Corporate Rescue Loan, Uptier Priming Debt or Received Obligations acquired in a Bankruptcy Exchange, it has a Fitch Rating of not lower than "CCC-" and an S&P Rating of not lower than "CCC-"; it is not a Project Finance Loan; it is not a Deferring Security; it has a minimum purchase price of 60.0% of the Principal Balance of each Collateral Debt Obligation.
The Issuer anticipates that, by the Issue Date, it or the Investment Manager on its behalf will have purchased or committed to purchase Collateral Debt Obligations the Aggregate Principal Balance of which is approximately equal to at least €350mln, which is 87.50% of the Target Par Amount.
The Rated Notes are being offered by the Issuer through J.P. Morgan Securities plc in its capacity as arranger and initial purchaser of the offering of such Rated Notes subject to prior sale.
EU Risk Retention: The Retention Holder will undertake to subscribe for and retain, on an ongoing basis for so long as a Class of Notes remains outstanding, a material net economic interest in the Subordinated Notes with a Principal Amount Outstanding equal to not less than 5% of the Aggregate Collateral Balance in accordance with Article 6(3)(d) of the Securitisation Regulations.
US Risk Retention: Based on the LSTA Decision, no party involved in the transaction will retain any debt intended to satisfy the US Risk Retention Rules.