AMMC CLO 20 Ltd: 07 April 2017
The Issuer's investment portfolio will consist primarily of bank loans and Participation Interests, and the portfolio will be managed by American Money Management Corporation.
Portfolio eligibility criteria (includes): is U.S. Dollar-denominated and is neither convertible by the obligor thereon or the issuer thereof into, nor payable in, any other currency; is not (A) a Defaulted Obligation or (B) a Credit Risk Obligation; is not a lease or a finance lease; has a Moody's Rating and an S&P Rating; is not a Related Obligation, a Bridge Loan, a Middle Market Loan or a Structured Finance Obligation; is not a Synthetic Security; is purchased at a price at least equal to 65% of its Principal Balance; is issued by an obligor Domiciled in the United States, Canada, a Group I Country, a Group II Country, a Group III Country or a Tax Jurisdiction and is not issued by an obligor Domiciled in Spain, Greece, Italy or Portugal; is not a Bond.
It is expected that as of the Closing Date the Issuer will have purchased (or committed to purchase) Pre-Closing Collateral Obligations with an Aggregate Principal Balance of at least 80% of the Target Initial Par Amount.
The Retention Holders (Great American Life Insurance Company and Great American Insurance Company) act as holder of the Retained Interest for the purposes of the US Risk Retention Rules. The US Risk Retention Rules generally require the "sponsor" of a "securitization transaction" to retain (either directly or through a "majority-owned affiliate") not less than 5% of the "credit risk" of "securitized assets" (as such terms are defined in the U.S. Risk Retention Rules. The "sponsor" may retain an "eligible vertical interest" or an "eligible horizontal residual interest" or any combination thereof. The US Risk Retention Rules prohibit the "sponsor" or the "majority-owned affiliate," as applicable, from directly or indirectly eliminating or reducing its credit exposure by hedging or otherwise transferring the "credit risk" that it is required to retain.