Octagon Investment Partners IX, Ltd. JPMorgan - Irish Stock Exchange
Octagon Investment Partners IX, Ltd. JPMorgan - Irish Stock Exchange
Octagon Investment Partners IX, Ltd. JPMorgan - Irish Stock Exchange
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"Principal Balance" means with respect to (i) any Collateral Debt Obligation (other than a Non-USD Debt<br />
Obligation), Defaulted Obligation, Equity Security or Eligible <strong>Investment</strong> purchased with Principal Proceeds, as of<br />
any date of determination, the outstanding principal amount of such Collateral Debt Obligation, Defaulted<br />
Obligation, Equity Security or Eligible <strong>Investment</strong> purchased with Principal Proceeds, as the case may be, and<br />
(ii) any Non-USD Debt Obligation, as of any date of determination, the USD Notional Amount of the Currency<br />
Hedge Transaction with respect thereto; provided that:<br />
(a) the Principal Balance of a Synthetic Security shall be the notional amount specified as<br />
such in the Synthetic Security;<br />
(b) the Principal Balance of a Collateral Debt Obligation received upon acceptance of an<br />
Offer (as described in clause (i) of the definition thereof) to exchange a Collateral Debt Obligation for such<br />
Collateral Debt Obligation will be deemed to be the least of (w) the Market Value of such Collateral Debt<br />
Obligation, (x) a percentage of the outstanding principal amount equal to the Moody's Recovery Rate for<br />
such Collateral Debt Obligation or (y) a percentage of the outstanding principal amount equal to the<br />
Standard & Poor's Recovery Rate for such Collateral Debt Obligation based upon its Standard & Poor's<br />
Priority Category, until such time as Interest Proceeds or Principal Proceeds, as applicable, are first<br />
received when due with respect to such Collateral Debt Obligation; provided that, for the purposes of<br />
calculating amounts payable to the Trustee or the Collateral Manager under the Indenture, the Principal<br />
Balance of such Collateral Debt Obligation shall be the outstanding principal amount thereof;<br />
(c)<br />
the Principal Balance of each Equity Security will be deemed to be zero;<br />
(d) except for the purposes of calculating amounts payable to the Collateral Manager under<br />
the Indenture, the Principal Balance with respect to the Collateral Debt Obligations that are loaned pursuant<br />
to a Securities Lending Agreement will be reduced by any shortfall between the amount of Securities<br />
Lending Collateral required to be posted by the counterparty thereto and the amount actually posted;<br />
(e) except for the purposes of calculating amounts payable to the Collateral Manager under<br />
the Indenture, the Principal Balance of any Collateral Debt Obligations and any Eligible <strong>Investment</strong>s with<br />
respect to which the Trustee does not have a first priority perfected security interest (other than Collateral<br />
Debt Obligations loaned to a Securities Lending Counterparty; provided that no default has occurred under<br />
the related Securities Lending Agreement) will be deemed to be zero;<br />
(f) the Principal Balance of any Deferred Interest Asset will not include any deferred or<br />
capitalized interest and, except for the purposes of calculating amounts payable to the Collateral Manager<br />
under the Indenture, will be the Recovery Value thereof;<br />
(g) solely for purposes of calculating the Coverage Tests and the Reinvestment<br />
Overcollateralization Test, the Principal Balance of any Collateral Debt Obligation that was purchased by<br />
the Issuer for an amount that was (i) less than 85% of its outstanding principal balance, in the case of a<br />
Collateral Debt Obligation that is a loan that was rated no higher than "Caa1" by Moody's or "CCC+" by<br />
Standard & Poor's at the time of such purchase, (ii) less than 80% of its outstanding principal balance, in<br />
the case of a Collateral Debt Obligation that is a loan that was rated at least "B3" by Moody's or "B-" by<br />
Standard & Poor's at the time of such purchase or (iii) less than 75% of its outstanding principal balance, in<br />
the case of any other Collateral Debt Obligation, will be the Adjusted Purchase Price (as determined by the<br />
Collateral Manager and reported to the Collateral Administrator and the Trustee); provided that, in the<br />
event the Market Value of such Collateral Debt Obligation (as determined by the Collateral Manager and<br />
indicated to the Collateral Administrator and Trustee) exceeds 90% of the outstanding principal amount of<br />
such Collateral Debt Obligation for 30 consecutive Business Days, the Principal Balance of such Collateral<br />
Debt Obligation for purposes of calculating the Coverage Tests and the Reinvestment Overcollateralization<br />
Test will be the outstanding principal balance of such Collateral Debt Obligation;<br />
(h) solely for purposes of calculating the Coverage Tests and the Reinvestment<br />
Overcollateralization Test, if, at any time, the Aggregate Principal Balance of all Triple-C Collateral Debt<br />
Obligations exceeds 7.5% of the Principal Collateral Value (as measured without giving effect to this<br />
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