OFFERING MEMORANDUM STRATA 2007-1, LIMITED $40000000 ...

More documents

Recommendations

Info

TRANSFERRED EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER SUCH ACT OR PURSUANT TO AN EFFECTIVE REGISTRATION UNDER SUCH ACT. 12001-01597 NY:2045248.4 FORWARD LOOKING STATEMENTS Any projections, forecasts and estimates contained herein are forward looking statements and are based upon certain assumptions that the Issuer considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. Accordingly, the projections are only an estimate. Actual results may vary from the projections, and the variations may be material. Some important factors that could cause actual results to differ materially from those in any forward looking statements include, among others, changes in interest rates, market, financial or legal uncertainties, differences in the actual allocation of the Reference Entities among categories from those assumed, the timing and the number of Credit Events occurring under the Credit Default Swap, and differences in the levels of the market value of Reference Obligations assumed for purposes of settling Credit Events. Consequently, the inclusion of projections herein should not be regarded as a representation by the Issuer, the Trustee, the Portfolio Manager, the Swap Counterparty, the Interest Rate Swap Counterparty, the Placement Agent or any of their respective Affiliates or any other Person or entity of the results that will actually be achieved by the Issuer. None of the Issuer, the Trustee, the Portfolio Manager, the Swap Counterparty, the Interest Rate Swap Counterparty, the Placement Agent or any of their respective Affiliates has any obligation to update or otherwise revise any projections, including any revisions to reflect changes in economic conditions or other circumstances arising after the date hereof, or to reflect the occurrence of unanticipated events, even if the underlying assumptions do not come to fruition. CERTAIN LEGAL INVESTMENT CONSIDERATIONS Institutions whose investment activities are subject to investment laws and regulations or to review by certain regulatory authorities may be subject to restrictions on investments in the Notes. Any such institution should consult its legal advisers in determining whether and to what extent there may be restrictions on its ability to invest in the Notes. Without limiting the foregoing, any financial institution that is subject to the jurisdiction of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the National Credit Union Administration, any state insurance commission, or any other federal or state agencies with similar authority should review any applicable rules, guidelines and regulations prior to purchasing the Notes. Depository institutions should review and consider the applicability of the Federal Financial Institutions Examination Council Supervisory Policy Statement on Securities Activities, which has been adopted by the respective federal regulators. None of the Issuer, the Trustee, the Portfolio Manager, the Swap Counterparty, the Interest Rate Swap Counterparty, the Placement Agent or any of their respective Affiliates makes any representation as to the proper characterization of the Notes for investment or other purposes under applicable law or regulatory guidelines, or as to the ability of particular purchasers to purchase the Notes under applicable investment restrictions. The uncertainties described above (and any unfavorable future determinations concerning investment or applicable legal and regulatory characteristics of the Notes) may affect the liquidity of the Notes. Accordingly, all institutions whose activities are subject to investment laws and regulations, regulatory capital requirements or review by regulatory authorities should consult their own legal advisers in determining whether and to what extent the Notes are subject to investment, capital or other restrictions. iv
12001-01597 NY:2045248.4 TABLE OF CONTENTS SUMMARY...................................................................................................................................................................................... 1 RISK FACTORS ............................................................................................................................................................................. 8 Limited Assets to Make Payments on the Notes................................................................................................................ 8 Effect of Credit Events............................................................................................................................................................ 9 Deferral of Payments on the Notes....................................................................................................................................... 9 Limited Ability to Substitute Reference Entities.............................................................................................................. 10 Portfolio Manager to manage the Portfolios in respect of multiple series of obligations......................................... 10 Effect of Leverage ................................................................................................................................................................. 10 Subordination ......................................................................................................................................................................... 11 No Legal or Beneficial Interest in Obligations of Reference Entities .......................................................................... 11 Limited Information about Reference Entities ................................................................................................................. 11 Non-Investment Grade Reference Entities ........................................................................................................................ 12 Early Termination of the Swap Agreements..................................................................................................................... 12 Conflicts of Interest............................................................................................................................................................... 13 Certain Conflicts Relating to the Portfolio Manager....................................................................................................... 14 Swap Counterparty Not a Fiduciary ................................................................................................................................... 17 Creditworthiness of Bank of America................................................................................................................................ 17 Creditworthiness of the Obligor on the Collateral Assets and any Eligible Investments.......................................... 17 Credit Ratings......................................................................................................................................................................... 18 Suitability of Investment ...................................................................................................................................................... 18 Limited Liquidity and Transfer Restrictions..................................................................................................................... 18 No Registration under the Securities Act .......................................................................................................................... 19 Book-Entry Registration....................................................................................................................................................... 19 Investment Company Act..................................................................................................................................................... 19 ERISA Considerations.......................................................................................................................................................... 20 Legislation and Regulations in Connection with Prevention of Money Laundering ................................................. 20 U.S. Federal Income Tax Considerations.......................................................................................................................... 21 Accounting Considerations.................................................................................................................................................. 22 THE ISSUER.................................................................................................................................................................................. 23 DESCRIPTION OF THE NOTES.............................................................................................................................................. 25 General..................................................................................................................................................................................... 25 Payments on the Notes.......................................................................................................................................................... 25 Interest Payments......................................................................................................................................................... 25 Principal Payments; Redemption; Reduction and Increase of Principal........................................................... 26 Priority of Payments.............................................................................................................................................................. 27 Form and Denominations..................................................................................................................................................... 29 Book-Entry Registration....................................................................................................................................................... 29 Definitive Notes ..................................................................................................................................................................... 31 PURCHASE AND TRANSFER RESTRICTIONS ................................................................................................................ 32 Legend ..................................................................................................................................................................................... 32 Investor Representations....................................................................................................................................................... 33 Section 3(c)(7) Procedures................................................................................................................................................... 38 Available Information........................................................................................................................................................... 38 Issuer Covenants and Undertakings.......................................................................................................................... 38 Selling Restrictions................................................................................................................................................................ 40 European Economic Area........................................................................................................................................... 40 United Kingdom........................................................................................................................................................... 40 CLEARING AND SETTLEMENT............................................................................................................................................ 41 Initial Settlement of Global Notes ...................................................................................................................................... 41 Secondary Market Trading of Interests in Global Notes ................................................................................................ 42 Trading between DTC Participants..................................................................................................................................... 42 v Page
Page 1 and 2: 12001-01597 NY:2045248.4 OFFERING M
Page 3 and 4: 12001-01597 NY:2045248.4 NOTICES TO
Page 5: NO INVITATION, WHETHER DIRECTLY OR
Page 9 and 10: CERTAIN U.S. FEDERAL INCOME TAX CON
Page 11 and 12: 12001-01597 NY:2045248.4 "Portfolio
Page 13 and 14: 12001-01597 NY:2045248.4 The Swap C
Page 15 and 16: 12001-01597 NY:2045248.4 ("ISDA"),
Page 17 and 18: Cayman Islands Taxation Based upon
Page 19 and 20: Limited Ability to Substitute Refer
Page 21 and 22: the Reference Entities and the risk
Page 23 and 24: Certain Conflicts Relating to the P
Page 25 and 26: In addition, the Portfolio Manager
Page 27 and 28: Credit Ratings Credit ratings of th
Page 29 and 30: enforcement would produce a more eq
Page 31 and 32: of investing in, the Notes for U.S.
Page 33 and 34: Financial Statements Since the date
Page 35 and 36: Date, the Noteholders will be paid
Page 37 and 38: (i) first, to pay amounts owed to t
Page 39 and 40: also is available to others such as
Page 41 and 42: Legend 12001-01597 NY:2045248.4 PUR
Page 43 and 44: (ii) It understands that the Notes
Page 45 and 46: (xi) It confirms that all investmen
Page 47 and 48: (xxiii) It represents and warrants
Page 49 and 50: Selling Restrictions European Econo
Page 51 and 52: DTC has advised the Issuer that it
Page 53 and 54: Description of the Collateral Asset
Page 55 and 56: Payments Under the Credit Default S
Page 57 and 58:
transaction type category to which
Page 59 and 60:
Designation of Reference Obligation
Page 61 and 62:
(b) with respect to any Defaulted R
Page 63 and 64:
accordance with Section 1.11 (Grace
Page 65 and 66:
General Date. The Issuer and the In
Page 67 and 68:
12001-01597 NY:2045248.4 Charlotte,
Page 69 and 70:
Standard of Care The Portfolio Mana
Page 71 and 72:
(ii) the maximum possible Negative
Page 73 and 74:
On the Substitution Effective Date
Page 75 and 76:
Resignation and Removal of Portfoli
Page 77 and 78:
"Eligible Dealers" means Deutsche B
Page 79 and 80:
"Substitution Period" means the per
Page 81 and 82:
LAWRENCE R. ZENO, SENIOR PORTFOLIO
Page 83 and 84:
Mr. Walsh is a Senior Corporate bon
Page 85 and 86:
Counterparty under the Interest Rat
Page 87 and 88:
material allegations of a petition
Page 89 and 90:
(iii) to effect any other change th
Page 91 and 92:
its source; or (iv) a trust if (x)
Page 93 and 94:
additional tax equal to interest on
Page 95 and 96:
any such gain characterized as a di
Page 97 and 98:
Under current Cayman Islands Law: (
Page 99 and 100:
transaction. Sections 406(a) and 40
Page 101 and 102:
Board Resolutions The issuance of t
Page 103 and 104:
"Cash Settlement Date" means, with
Page 105 and 106:
"Placement Agent" means Banc of Ame
Page 107 and 108:
12001-01597 NY:2045248.4 INDEX Adde
Page 109 and 110:
Noteholder.........................
Page 111 and 112:
Verification Agent.................
Page 113 and 114:
Reference Entity Benchmark Obligati
Page 115 and 116:
Reference Entity Benchmark Obligati
Page 117 and 118:
12001-01597 NY:2045248.4 Asia Corpo
Page 119 and 120:
12001-01597 NY:2045248.4 Australia
Page 121 and 122:
e registered under the Securities A
Page 123 and 124:
violation of any such transfer rest
Page 125 and 126:
19. The Purchaser has all necessary
Page 127 and 128:
12001-01597 NY:2045248.4 118 Very t
show all

OFFERING MEMORANDUM STRATA 2007-1, LIMITED $40000000 ...

Create successful ePaper yourself

Delete template?

Save as template?