Gresham Capital CLO IV B.V. - Irish Stock Exchange

DESCRIPTION OF THE HEDGE ARRANGEMENTS
The following is a summary of the principal terms of the hedging arrangements entered into by the Issuer
on the Issue Date. The following is a summary only and should not be relied upon as an exhaustive description
of the detailed provisions of such documents (copies of which are available from the specified offices of the
Irish Listing Agent and any Transfer Agent).
Hedge Agreements
On or about the Issue Date, the Issuer entered into Sterling call options (the “Initial Hedge Agreement”
and together with any subsequent hedge agreements being a “Hedge Agreement”)) with the Initial Hedge
Counterparty. Subsequent hedging transactions may be entered into with any other person (each, including the
Initial Hedge Counterparty, a “Hedge Counterparty”), provided that any Hedge Counterparty has the
regulatory capacity to enter into derivatives transactions with Dutch residents. Each Hedge Counterparty (a
guarantor of its obligations) will have to have a short term debt rating of “F1” by Fitch and “A-1+” by S&P and
a long term debt rating of “A+” by Fitch.
The Initial Hedge Agreement is documented under a 1992 Master Agreement (Multicurrency—Cross
Border) in the form published by the International Swaps and Derivatives Association, Inc. (“ISDA”).
Transactions entered into under a Hedge Agreement are documented in confirmations to such Hedge
Agreement. Each transaction will be evidenced by a confirmation entered into pursuant to a Hedge Agreement
(each a “Hedge Transactions”).
The Initial Hedge Agreement is governed by English law.
Initial Hedge Transactions
On the Issue Date, the Issuer acquired Sterling call options. The Issuer may from time to time enter into
interest rate or currency swap transactions, in each case subject to the Issuer having obtained prior Rating
Agency Confirmation unless such transactions are Form-Approved Hedges.
Upon the exercise by the Collateral Manager of all or part of the Sterling call options as set out in the
Collateral Management Agreement, the Collateral Manager shall use the Sterling amounts received, either (a) to
repay Sterling Drawings as set out in the Class A1A Note Purchase Agreement; or (b) as part of the Sterling
Interest Proceeds or Sterling Principal Proceeds to be applied in accordance with the Priorities of Payment on a
Payment Date.
Asset Swap Transactions
The Issuer may enter into Asset Swap Transactions to hedge payments to be received pursuant to Non-Euro
Collateral Debt Security and the Issuer shall be required to obtain Rating Agency Confirmation with respect to
each new Asset Swap Transaction unless such Asset Swap Transaction is a Form-Approved Hedge.
Standard Terms of Hedge Agreements
Each Hedge Agreement shall contain the standard terms required by the Rating Agencies for the type of
transaction described in this Prospectus including limited recourse and non-petition language and provisions in
the event of a downgrade of the Hedge Counterparties. Each new Hedge Agreement shall, unless it is a Form-
Approved Hedge, be the subject of Rating Agency Confirmation at the time it is entered into by the Issuer.
189