Avoca Static CLO I DAC: 25 September 2023
The assets securing the Notes will consist primarily of a portfolio of Secured Senior Loans and Secured Senior Bonds, and will be managed by KKR Credit Advisors (Ireland) Unlimited Company.
Eligibility criteria (includes): it is a Secured Senior Loan or a Secured Senior Bond; it is not a Structured Finance Security, pre-funded letter of credit, collateralised letter of credit or a Synthetic Security; it is not a Defaulted Obligation or a Credit Impaired Obligation; for so long as Fitch assigns a rating in respect of an Outstanding Class, it has a Fitch Rating of not lower than "CCC-" and, for so long as Moody's assigns a rating in respect of an Outstanding Class, it has a Moody's Rating of not lower than "Caa3"; it is not a debt obligation that pays scheduled interest less frequently than annually; it is not a Project Finance Loan; it is not a Zero Coupon Obligation; it is not a loan Participation; it has a minimum purchase price of 80.0% of the principal amount outstanding of such Collateral Debt Obligation.
The Notes will be offered by the Issuer through Morgan Stanley & Co. International plc in its capacity as arranger and initial purchaser of the offering of each Class of Notes to be issued on the Issue Date, subject to prior sale.
EU & UK Risk Retention: The Retention Holder will retain for its own account and in its capacity as an "originator" for the purposes of the EU/UK Securitisation Regulations, on an ongoing basis for so long as any Class of Notes remains outstanding, a material net economic interest in the transaction which will be comprised of an interest in the first loss tranche (within the meaning of and as described in paragraph 3(d) of Article 6 of the EU/UK Securitisation Regulations in force as at the Issue Date) by way of holding Subordinated PPNs with an aggregate original Principal Amount Outstanding, at any time, equal to not less than 5% of the Aggregate Collateral Balance.
US Risk Retention: The Retention Holder (KKR-Generali Partners SCSp SICAV-RAIF in respect of its Leveraged Loan Sub-Fund) intends to comply with the risk retention requirements under the US Risk Retention Rules by holding an "eligible horizontal residual interest" in an amount at least equal to the amount required (and for so long as required) by the US Risk Retention Rules.