Avoca CLO XXXI DAC: 11 September 2024

The assets securing the Notes will consist of a portfolio of Senior Loans, Secured Senior Bonds, Corporate Rescue Loans, Mezzanine Obligations and High Yield Bonds, and will be managed by KKR Credit Advisors (Ireland) Unlimited Company.

Eligibility criteria (includes): it is a Secured Senior Loan, a Secured Senior Bond, a Corporate Rescue Loan, an Unsecured Senior Loan, a Mezzanine Obligation, a Second Lien Loan or a High Yield Bond; it is not a Defaulted Obligation or a Credit Impaired Obligation; it is not a lease; it is not a Structured Finance Security, Pre-Funded Letter of Credit, Collateralised Letter of Credit or a Synthetic Security; is an obligation of an Obligor or Obligors Domiciled in a Qualifying Country; it is not a Project Finance Loan; it is not a Deferring Security; it is not a Collateral Debt Obligation of KKR or any Portfolio Company sponsored by KKR that was organised or incorporated in the United States; other than in the case of Corporate Rescue Loans, Received Obligations acquired in a Bankruptcy Exchange or Uptier Priming Debt, 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 S&P assigns a rating in respect of an Outstanding Class, it has an S&P Rating of not lower than "CCC-"; it is not a PIK Obligation; it is not a Zero Coupon Obligation; it is not a Bridge Loan; it has a minimum purchase price of 60.0% of the Principal Balance of such 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 €390mln, which is approximately 97.5% of the Target Par Amount.

The Notes will be offered by the Issuer through Citigroup Global Markets Limited in its capacity as placement agent of the offering of such Notes, subject to prior sale.

EU & UK Risk Retention: The Investment Manager shall act as Retention Holder for the purposes of the EU/UK Retention and Transparency Requirements. The Retention Holder will, for so long as any Class of Rated Notes remains outstanding, undertake to subscribe for and retain, on an ongoing basis, 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 Notes with an original Principal Amount Outstanding, at any time, equal to not less than 5% of the Aggregate Collateral Balance.

US Risk Retention: Based on the LSTA Opinion of the DC Circuit Court, the Retention Holder does not intend to retain a risk retention interest contemplated by the US Risk Retention Rules in connection with this transaction.