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

Reinvestment in Collateral
Debt Securities:....................................
Fees paid to Collateral Manager:..............
Subject to certain limits, Principal Proceeds, Drawings under the
Class A1A Notes and the amount credited to each of the Initial
Proceeds Account, the Additional Collateral Account and the
Sterling Additional Collateral Account may be used during the
Reinvestment Period to purchase Collateral Debt Securities
meeting the Reinvestment Criteria. Subject to certain limits,
certain Unscheduled Principal Proceeds and Sale Proceeds from
Credit Improved Securities may be used after the Reinvestment
Period to purchase Collateral Debt Securities meeting the
Reinvestment Criteria and the Additional Reinvestment Criteria.
See “Description of the Portfolio—Sale of Collateral Debt
Securities and Reinvestment Criteria” below.
The Collateral Manager has been or will, subject to the Priorities of
Payment and the limited recourse and non-petition provisions of
the Collateral Management Agreement (which are similar to
Condition 4(c) (Limited Recourse and Non-Petition)), be paid:
(a) an up-front fee and any applicable VAT payable thereon on the
Issue Date;
(b) the Base Collateral Management Fee in arrear on each
Payment Date;
(c) the Subordinated Collateral Management Fee in arrear on each
Payment Date; and
(d) the Incentive Collateral Management Fee in arrear on each
Payment Date, but only if the Incentive Management Fee
Hurdle Rate is achieved.
Any Base Collateral Management Fee and/or Subordinated
Collateral Management Fee not paid on the Payment Date on
which it is due will be added to the Base Collateral Management
Fee and/or Subordinated Collateral Management Fee, respectively,
due on the next occurring Payment Date.
Accounts: ................................................
Eligible Investments: ...............................
Hedge Arrangements: ..............................
The Issuer established various accounts with the Account Bank
prior to the Issue Date. The Issuer also opened custody accounts
with the Custodian in accordance with the Agency Agreement. See
“Description of the Accounts” below.
Amounts standing to the credit of the Accounts may be invested by
or on behalf of the Issuer in Eligible Investments.
The Issuer entered into various Sterling call options (each an
“Initial Hedge Transaction” and together the “Initial Hedge
Transactions”) with The Bank of New York (the “Initial Hedge
Counterparty”) on the Issue Date. The Initial Hedge Transactions
are documented by a 1992 ISDA Master Agreement (Multicurrency—Cross
Border) as published by the International Swaps
and Derivatives Association, Inc., together with a schedule thereto
and confirmations (the “Initial Hedge Agreement”).
The Issuer may enter into further hedging arrangements to hedge
interest rate or currency risks. The Issuer will have to obtain
Rating Agency Confirmation prior to entering into any such
hedging arrangements after the Issue Date unless such hedging
arrangement is a Form-Approved Hedge. See “Description of
Hedge Arrangements” below.
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