OCI Euro Fund I B.V. - Irish Stock Exchange

Issuer will be permitted under the Class A1 Notes after the Class A1 Available Commitment Termination
Date. The fact that the Initial Investment Period may be up to one year long magnifies the risks
discussed above. No assurance can be given that the conditions to draw down Class A1 Drawings from
the Class A1 Available Commitment under the Class A1 Notes will be capable of being satisfied at any
time after the Issue Date. Any inability by the Issuer to draw down Class A1 Drawings from the Class
A1 Available Commitment under the Class A1 Notes will affect its ability to acquire additional Collateral
Debt Obligations during the Initial Investment Period.
3.3 Nature of the Collateral
The Collateral on which the Notes and the claims of the other Secured Parties are secured will be
subject to credit, liquidity, interest rate and exchange rate risks, general economic conditions,
operational risks, structural risks, the condition of financial markets, political events, developments or
trends in any particular industry, changes in prevailing interest rates and periods of adverse
performance. All of the Collateral Debt Obligations pledged to secure the Notes will be senior leveraged
loans, Structured Finance Obligations, high yield bonds and mezzanine loans (or synthetic securities
linked thereto) of various Obligors, with a principal place of business or significant operations in a
Qualifying Country substantially all of which will be rated or assigned an implied rating below investment
grade.
Credit Risk Investment in the Notes of any Class involves a degree of risk arising from fluctuations in
the amount and timing of receipt of the principal and interest on the Collateral Debt Obligations by or on
behalf of the Issuer and the amounts of the claims of creditors of the Issuer ranking in priority to the
holders of each Class of the Notes. In particular, prospective purchasers of such Notes should be
aware that the amount and timing of payment of the principal and interest on the Collateral Debt
Obligations will depend upon the detailed terms of the documentation relating to each of the Collateral
Debt Obligations and on whether or not any obligor thereunder defaults in its obligations.
Default and Concentration Risk The subordination levels of each of the Classes of Notes will be
established to withstand certain assumed deficiencies in payment caused by defaults on the related
Collateral Debt Obligations. See "Ratings of the Notes". There is no assurance that actual losses will
not exceed such assumed losses. If actual payment deficiencies exceed such assumed levels,
however, payments on the Notes could be adversely affected. The amount which defaults on the
Collateral Debt Obligations adversely affecting each Class of Notes will be directly related to the level of
subordination thereof pursuant to the Priorities of Payment. The risk that payments on the Notes could
be adversely affected by defaults on the related Collateral Debt Obligations is likely to be increased to
the extent that the Portfolio of Collateral Debt Obligations is concentrated in any one Obligor, industry,
region or country as a result of the increased potential for correlated defaults in respect of a single
issuer or within a single industry, region or country as a result of downturns relating generally to such
industry, region or country.
To the extent that a default occurs with respect to any Collateral Debt Obligation and the Issuer or the
Trustee sells or otherwise disposes of such Collateral Debt Obligation, the proceeds of such sale or
disposition are likely to be less than the unpaid principal and interest thereon. In addition, the Issuer
may incur additional expenses to the extent it seeks recoveries upon the default of a Collateral Debt
Obligation or participates in the restructuring of a Collateral Debt Obligation. Even in the absence of a
default with respect to any of the Collateral Debt Obligations, the potential volatility and illiquidity of the
European leverage loan market means that the market value of such Collateral Debt Obligations may be
less than the market value thereof when initially purchased and from the principal amount of such
Collateral Debt Obligations. Accordingly, no assurance can be given as to the amount of proceeds of
any sale or disposition of such Collateral Debt Obligations at any time, or that the proceeds of any such
sale or disposition would be sufficient to repay a corresponding par amount of principal of and interest
on the Notes after, in each case, paying all amounts payable prior thereto pursuant to the Priorities of
Payment. Moreover, there can be no assurance as to the timing of any recovery.
Acquisition and Disposal Risk The financial markets may experience substantial fluctuations in prices
for Senior Loans, Structured and Finance Obligations and Mezzanine Obligations and limited liquidity for
such obligations. No assurance can be given that the conditions giving rise to such price fluctuations
and limited liquidity will not occur, subsist or become more acute following the Issue Date. During
periods of limited liquidity and higher price volatility, the Issuer’s ability to acquire or dispose of Collateral
Debt Obligations at a price and time that the Issuer deems advantageous may be impaired. As a result,
in periods of rising market prices, the Issuer may be unable to participate in price increases fully in the
event that it is either unable to dispose of Collateral Debt Obligations whose prices have risen or to
acquire Collateral Debt Obligations whose prices are on the increase; the Issuer’s inability to dispose
fully and promptly of Collateral Debt Obligations in declining markets will conversely cause the net asset
value of the Portfolio to decline. A decrease in the market value of the Collateral Debt Obligations would
also adversely affect the proceeds of sale that could be obtained upon the sale of the Collateral Debt
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