VALLAURIS II CLO PLC - Irish Stock Exchange

their respective functions under the Collateral Management
Agreement each of the Collateral Managers shall ensure that the
portion of the Portfolio for which it is responsible is managed in
compliance with the terms of the Collateral Management
Agreement and the Conditions of the Notes. Natexis Banques
Populaires will procure that Natexis Asset Management will
comply with its obligations as a Collateral Manager under the
Collateral Management Agreement (including its obligation to
manage the categories of Collateral Debt Obligations to be
managed by it in compliance with the Collateral Management
Agreement and the Conditions of the Notes). The Collateral
Managers shall prior to making investment or disposal decisions
consult with each other with a view to ensuring that the Portfolio
complies with the terms of the Collateral Management Agreement
and the Conditions of the Notes (and, in particular to ensure
compliance with the obligations of the Collateral Managers
thereunder in respect of the Investment Objectives and the
Collateral Quality Tests to the extent required under the terms of
the Collateral Management Agreement).
Sale of Collateral Debt Obligations: Subject to the terms of the
Collateral Management Agreement, the following categories of
Collateral Debt Obligations or Defaulted Equity Securities owned
by the Issuer may be sold in the following circumstances:
(a) at any time:
(i) any Defaulted Obligation;
(ii) any Defaulted Equity Security;
(iii) any Credit Risk Obligation; and
(iv) any Credit Improved Obligation;
(b) at any time during the Reinvestment Period: any Collateral
Debt Obligation which is not a Credit Improved Obligation, a
Credit Risk Obligation or a Defaulted Obligation provided
that all such sales (measured by reference to the aggregate
Principal Balance of the Collateral Debt Obligations
(excluding any Credit Improved Obligations, Credit Risk
Obligations or Defaulted Obligations) sold in that year (each
such year being a year from, but excluding, the Closing Date
or, as the case may be an anniversary thereof, to, but
excluding, the next succeeding anniversary thereof)(and
excluding any sales pursuant to paragraph (a) above)) do
not exceed 20 per cent. of the CDO Principal Balance as at the
most recent to have occurred of the Closing Date and each
anniversary thereof.
subject in each case to certain restrictions described under
‘‘Description of the Portfolio – Management of the Portfolio –
Overview’’ below.
Treatment of Sale Proceeds and Principal Proceeds: The proceeds of
sale of Collateral Debt Obligations in the circumstances provided
above, together with any other Principal Proceeds received, will be
applied by the Collateral Administrator, acting on behalf of the
Issuer:
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