Palmer Square European Loan Funding 2023-3: 11 December 2023
The assets securing the Notes will consist of a portfolio of primarily Senior Secured Loans, Senior Secured Bonds, Unsecured Senior Loans, Second Lien Loans, Mezzanine Obligations and High Yield Bonds, and will be managed by Palmer Square Europe Capital Management LLC.
Eligibility criteria (includes): it is a Senior Secured Loan (which may include PIK Securities), a Senior Secured Bond, an Unsecured Senior Loan, a Mezzanine Obligation (which may include PIK Securities), a Second Lien Loan, a Corporate Rescue Loan or a High Yield Bond; it is not a Defaulted Obligation or a Credit Impaired Obligation; it is not a Zero Coupon Security; it is an obligation in respect of which the Obligor (or the guarantor of such obligation) is domiciled in a Qualifying Country, as determined by the Servicer; it is not a Project Finance Loan; it is not a Step-Down Coupon Security; it shall have been acquired by the Issuer for a purchase price of not less than 50% of the par value thereof; it is, to the best of the Servicer's knowledge, an ESG Compliant Obligation; Other than in the case of a Corporate Rescue Loan (which shall have a rating as determined by the definition of "Moody's Rating", "S&P Rating" and "Fitch Rating" as applicable), if S&P is a Rating Agency, it is an obligation which has an S&P Rating of "CCC-" or higher, if Moody's is a Rating Agency, it is an obligation which has an Moody's Rating of "Caa3" or higher and if Fitch is a Rating Agency, a Fitch Rating of "CCC-" or higher.
The Issuer anticipates that, by the Issue Date, it or the Servicer on its behalf will have purchased or committed to purchase Collateral Debt Obligations the Aggregate Principal Balance of which is equal to at least €400mln.
EU & UK Risk Retention: The Retention Holder will undertake, as an originator, to subscribe for on the Issue Date and hold on an ongoing basis and for its own account, 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.
US Risk Retention: Based on the LSTA decision, no party involved in the transaction will obtain on the Issue Date and retain any Notes intended to satisfy the US Risk Retention Rules.