Contract analysis
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Contract analysis / rating-agency-presentation-ridgeline.pptx
rating-agency-presentation-ridgeline.pptx
High · 0
Medium · 1
Standard · 3
I. Driftwood Platform Overview & Track Record
I. Driftwood Platform Overview & Track Record
II. Collateral Manager — Driftwood Credit Management LLC
II. Collateral Manager — Driftwood Credit Management LLC
III. Transaction Overview & Capital Structure
III. Transaction Overview & Capital Structure
IV. Collateral Eligibility Criteria & Portfolio Parameters
IV. Collateral Eligibility Criteria & Portfolio Parameters
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
IX. Tax & Regulatory Considerations
IX. Tax & Regulatory Considerations
X. Timeline & Next Steps
X. Timeline & Next Steps [slide 3] Driftwood Platform Overview Driftwood Absolute Return Fund Ltd. — Cayman Islands-domiciled hedge fund operating across asset management and banking Approximately $6.8 billion AUM as of Q1 2023 Principal Office: 200 Brickell Avenue, Suite 3100, Miami, FL 33131 Founded and led by Marcus Sorensen, Founder & CIO — 22 years of structured credit experience; former head of leveraged financ
1. Trustee fees and expenses ($25,000 p.a.; expense cap $50,000 per payment date) and admi
Standard
⚑ Commercial term
1. Trustee fees and expenses ($25,000 p.a.; expense cap $50,000 per payment date) and administrative expenses
2. Senior collateral management fee: 0.15% p.a. ($600,000/yr)
Standard
⚑ Commercial term
2. Senior collateral management fee: 0.15% p.a. ($600,000/yr)
3. Class A-1 Note interest, then Class A-2 Note interest
3. Class A-1 Note interest, then Class A-2 Note interest
7. O/C and I/C test compliance — if tests fail, principal repayment to senior notes in ord
7. O/C and I/C test compliance — if tests fail, principal repayment to senior notes in order of priority
8. Subordinate collateral management fee: 0.35% p.a. ($1,400,000/yr)
Standard
⚑ Commercial term
8. Subordinate collateral management fee: 0.35% p.a. ($1,400,000/yr)
9. Subordinated Note distributions (residual)
9. Subordinated Note distributions (residual)
10. Incentive management fee: 20% of excess residual above 12% IRR hurdle to subordinated
Medium
⚑ Liability cap to check against exposure
10. Incentive management fee: 20% of excess residual above 12% IRR hurdle to subordinated noteholders [slide 13] Warehouse Facility & Ramp Warehouse Lender: Havenwood Bank, N.A. Facility Amount: $250,000,000 revolving credit facility Interest Rate: SOFR + 150 bps; Advance Rate: 85% of eligible collateral par Facility Date: May 22, 2023; Ramp began May 25, 2023 Current Ramp Status: Ongoing — targeting approximately 85