Octagon Investment Partners IX, Ltd. JPMorgan - Irish Stock Exchange

Payment Sequence or (y) if, on the related Determination Date, the Pro Rata Special Redemption Conditions are
satisfied, (A) first, to the payment of the Aggregate Outstanding Amounts of each Class of the Notes on a pro
rata basis according to the respective Aggregate Outstanding Amounts thereof, until the Aggregate Outstanding
Amount of the Class A-1 Notes is reduced to U.S.$180,000,000, and (B) second, in accordance with the Note
Payment Sequence thereafter;
(7) (i) during the Reinvestment Period, all remaining funds will be allocated to the Principal Collection
Account for the acquisition of Substitute Collateral Debt Obligations and (ii) after the Reinvestment Period in
the case of Unscheduled Principal Payments and Sale Proceeds of Credit Risk Obligations and Credit Improved
Obligations received during the related Due Period, at the sole discretion of the Collateral Manager and in
accordance with the Reinvestment Criteria and subject to the Additional Reinvestment Conditions, to the
Principal Collection Account for the acquisition of additional Collateral Debt Obligations;
(8) after the Reinvestment Period, to make payments in accordance with the Note Payment Sequence;
(9) to the payment of the amounts referred to in clauses (14) and (17) through (19) of "—Distributions of
Interest Proceeds" above, in the sequence stated therein and only to the extent not paid in full thereunder;
(10) to the payment of the Collateral Management Incentive Fees, if any; and
(11) any remaining funds shall be distributed to the Preferred Share Paying Agent (for payment to holders
of the Preferred Shares pursuant to the Preferred Share Documents to the extent legally permitted).
If, on any Distribution Date, the amount available in the Payment Account is insufficient to make the full
amount of the disbursements required pursuant to the Indenture, the Trustee will make the disbursements called for
in the order and according to the priority set forth above under "—Priority of Payments—Distributions of Interest
Proceeds" and "—Priority of Payments—Distributions of Principal Proceeds" to the extent funds are available
therefor.
Liquidation of Collateral; Final Distribution
On the Distribution Date in April 2020 (or, if earlier, prior to the Final Distribution Date), the Issuer will direct
the Trustee in writing to sell or liquidate all of the Collateral Debt Obligations in the manner specified by the Issuer,
and all net proceeds from such sales and liquidations and all available cash and all other amounts then credited to the
accounts will be distributed in the order of priorities set forth under "—Priority of Payments—Distributions of
Principal Proceeds" above, except that before payments are made in accordance with this paragraph, the Issuer will
be entitled to retain the amounts deposited in the Initial Capital Amount Account.
USE OF PROCEEDS
The net proceeds from the issuance of the Offered Securities, after payment of applicable fees and expenses in
connection with the structuring and placement of the Offered Securities (including by making a deposit to the
Expense Account of funds to be used to pay expenses following the Closing Date), are expected to be approximately
U.S.$390,000,000 and will be used by the Issuer (i) to fund, both on the Closing Date and after the Closing Date
pursuant to commitments entered into by the Issuer on or prior to the Closing Date for settlement in accordance with
customary settlement terms, the purchase of approximately U.S.$372,000,000 in aggregate principal amount of
Collateral Debt Obligations (at least U.S.$350,000,000 of which are expected to be owned by the Issuer on the
Closing Date) and (ii) to fund a U.S.$2,000,000 deposit to the Interest Reserve Account (to be applied as described
under "Security for the Notes—Accounts—Interest Reserve Account").
The sum of all remaining proceeds (together with other funds available therefor) will be deposited into the
Principal Collection Account as Principal Proceeds and thereafter will be used by the Issuer to fund the purchases of
additional Collateral Debt Obligations so that on or before the Effective Date the Issuer will have a portfolio of
Collateral Debt Obligations in an aggregate principal amount of approximately U.S.$386,000,000.
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