Contract analysis
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Contract analysis / rating-agency-presentation-crestview.pptx
rating-agency-presentation-crestview.pptx
High · 0
Medium · 2
Standard · 6
I. Driftwood Platform Overview
I. Driftwood Platform Overview
II. Collateral Manager — Driftwood Credit Management LLC
II. Collateral Manager — Driftwood Credit Management LLC
III. Transaction Summary & Capital Structure
III. Transaction Summary & Capital Structure
IV. Collateral Eligibility Criteria & Quality Tests
IV. Collateral Eligibility Criteria & Quality Tests
V. Overcollateralization & Interest Coverage Tests
V. Overcollateralization & Interest Coverage Tests
VI. Priority of Payments Waterfall
VI. Priority of Payments Waterfall
VII. Target Portfolio Characteristics
VII. Target Portfolio Characteristics
VIII. Key Structural Features & Timeline
VIII. Key Structural Features & Timeline
IX. Appendix — Key Parties & Contacts
Medium
⚑ Forum / governing law
IX. Appendix — Key Parties & Contacts [slide 3] Driftwood Platform Overview Driftwood Absolute Return Fund Ltd. ("Driftwood" or "DARF") — Cayman Islands exempted company with limited liability Registered Office: PO Box 4927, Windward House, 3rd Floor, George Town, Grand Cayman KY1-1306 Principal Office: 200 Brickell Avenue, Suite 3100, Miami, FL 33131 Assets Under Management: ~$6.8 billion (as of Q1 2023) Core strate
1. Taxes and registration fees
Standard
⚑ Commercial term
1. Taxes and registration fees
2. Trustee fees ($25,000 p.a.) and trustee expenses (capped at $50,000 per payment date)
Medium
⚑ Liability cap to check against exposure
2. Trustee fees ($25,000 p.a.) and trustee expenses (capped at $50,000 per payment date)
3. Senior collateral management fee: 0.15% p.a. ($600,000/yr)
Standard
⚑ Commercial term
3. Senior collateral management fee: 0.15% p.a. ($600,000/yr)
4. Administrative expenses and hedge payments
4. Administrative expenses and hedge payments 5–9. Note interest payments: Class A-1 → A-2 → B → C → D (sequential priority)
10. Subordinate collateral management fee: 0.35% p.a. ($1,400,000/yr)
Standard
⚑ Commercial term
10. Subordinate collateral management fee: 0.35% p.a. ($1,400,000/yr)
11. O/C and I/C cure payments (if applicable)
11. O/C and I/C cure payments (if applicable)
12. Incentive management fee: 20% of excess above 12% IRR hurdle
Standard
⚑ Commercial term
12. Incentive management fee: 20% of excess above 12% IRR hurdle
13. Residual to Subordinated Noteholders
13. Residual to Subordinated Noteholders [slide 13] Priority of Payments — Principal Waterfall
1. Unpaid taxes, trustee fees, and administrative expenses (to the extent not paid from in
Standard
⚑ Commercial term
1. Unpaid taxes, trustee fees, and administrative expenses (to the extent not paid from interest proceeds)
2. Class A-1 Note principal (until paid in full)
2. Class A-1 Note principal (until paid in full)
3. Class A-2 Note principal (until paid in full)
3. Class A-2 Note principal (until paid in full)
4. Class B Note principal (until paid in full)
4. Class B Note principal (until paid in full)
5. Class C Note principal (until paid in full)
5. Class C Note principal (until paid in full)
6. Class D Note principal (until paid in full)
6. Class D Note principal (until paid in full)
7. Remaining amounts to Subordinated Noteholders
Standard
⚑ Commercial term
7. Remaining amounts to Subordinated Noteholders [slide 14] Target Portfolio Characteristics Target collateral par: $400,000,000 — Broadly syndicated first-lien senior secured leveraged loans Primary obligor geography: United States Expected weighted average spread: ≥350 bps (significantly above minimum) Expected weighted average life: within 7.5-year maximum Expected diversity score: above minimum of 60 — Expected W