Istanbul, May 11 (DHA) - Moody\'s Investors Service, (\"Moody\'s\") has assigned provisional ratings to seven classes of notes to be issued by Cadogan Square CLO VII B.V. (\"Cadogan VII\", the \"Issuer\"):
- EUR 272,000,000 Class A Senior Secured Floating Rate Notes due 2031, Assigned (P)Aaa (sf)
- EUR 29,500,000 Class B-1 Senior Secured Floating Rate Notes due 2031, Assigned (P)Aa2 (sf)
- EUR 20,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031, Assigned (P)Aa2 (sf)
- EUR 30,500,000 Class C Senior Secured Deferrable Floating Rate Notes due 2031, Assigned (P)A2 (sf)
- EUR 25,500,000 Class D Senior Secured Deferrable Floating Rate Notes due 2031, Assigned (P)Baa2 (sf)
- EUR 27,500,000 Class E Senior Secured Deferrable Floating Rate Notes due 2031, Assigned (P)Ba2 (sf)
- EUR 13,500,000 Class F Senior Secured Deferrable Floating Rate Notes due 2031, Assigned (P)B2 (sf)
Moody\'s issues provisional ratings in advance of the final sale of financial instruments, but these ratings only represent Moody\'s preliminary credit opinions.
Upon a conclusive review of a transaction and associated documentation, Moody\'s will endeavour to assign definitive ratings. A definitive rating (if any) may differ from a provisional rating.
In the statement made by Moody’s following remarks were made:
“Moody\'s provisional ratings of the rated notes address the expected loss posed to noteholders by the legal final maturity of the notes in May 2031.
“The provisional ratings reflect the risks due to defaults on the underlying portfolio of assets, the transaction\'s legal structure, and the characteristics of the underlying assets. Furthermore, Moody\'s is of the opinion that the Collateral Manager, Credit Suisse Asset Management Limited (\"CSAM\", the \"Manager\"), has sufficient experience and operational capacity and is capable of managing this CLO.
“The Issuer will issue the Class A Notes, the Class B-1 Notes, the Class B-2 Notes, the Class C Notes, the Class D Notes, the Class E Notes and the Class F Notes (the \"Refinancing Notes\") in connection with the refinancing of the Class A Senior Secured Floating Rate Notes due 2029, the Class B Senior Secured Floating Rate Notes due 2029, the Class C Senior Secured Deferrable Floating Rate Notes due 2029, the Class D Senior Secured Deferrable Floating Rate Notes due 2029 and the Class E Senior Secured Deferrable Floating Rate Notes due 2029 (\"the Refinanced Notes\"), previously issued on May 19, 2016 (the \"Original Issue Date\").
“The Issuer will use the proceeds from the issuance of the Refinancing Notes to redeem in full the Original Notes that will be refinanced. On the Original Issue Date, the Issuer also issued EUR 53,650,000 of unrated Subordinated Notes, which will remain outstanding.
“Cadogan VII is a managed cash flow CLO. At least 96% of the portfolio must consist of secured senior obligations and up to 4% of the portfolio may consist of unsecured senior loans, unsecured senior bonds, second lien loans, mezzanine obligations and high yield bonds. At closing, the portfolio is expected to be comprised predominantly of corporate loans to obligors domiciled in Western Europe.
“CSAM will manage the CLO. It will direct the selection, acquisition and disposition of collateral on behalf of the Issuer and may engage in trading activity, including discretionary trading, during the transaction\'s reinvestment period. Thereafter, purchases are permitted using principal proceeds from unscheduled principal payments and proceeds from sales of credit improved and credit risk obligations, and are subject to certain restrictions.
“The transaction incorporates interest and par coverage tests which, if triggered, divert interest and principal proceeds to pay down the notes in order of seniority.”
