Toro European CLO 3 seeks holder approval to amend notes due 2030

By Sarah Lizee

Olympia, Wash., Jan. 13 – Toro European CLO 3 DAC notified holders that it is seeking to amend several classes of its notes due 2030.

Notes covered by the amendment would include the following:

• €7.5 million class B-2 secured floating-rate notes due 2030;

• €13.75 million class C-1 secured deferrable floating-rate notes due 2030;

• €4.75 million class C-2 secured deferrable floating-rate notes due 2030;

• €17.5 million class D secured deferrable floating-rate notes due 2030;

• €23 million class E secured deferrable floating-rate notes due 2030;

• €9.75 million class F secured deferrable floating-rate notes due 2030;

• €20.5 million class M-1 subordinated notes due 2030; and

• €20.1 million class M-2 subordinated notes due 2030.

Specifically, Toro wishes to amend the definition of “senior secured bond” in the conditions of the notes’ indenture to mean a collateral debt obligation that is a secured debt security in the form of, or represented by, a bond, note, certificated debt security or other debt security that is not a senior secured loan as determined by the investment manager, provided that:

• It is secured by fixed assets of the obligor or guarantor if and to the extent that the provision of security over assets is permissible under applicable law and otherwise by 100% of the equity interests in the stock of an entity owning either directly or indirectly such fixed assets; and

• No other obligation of the obligor has any higher priority security interest in such fixed assets or stock referred to above, provided that a revolving loan of the obligor that may require one or more future advances to be made to the obligor may have a higher priority security interest in such assets or stock in the event of an enforcement in respect of such loan representing up to 15% of the obligor’s senior debt.

The proposed amendment for each series will not become effective until the holders of more than 50% of each class of notes approve the amendment.

Holders may vote to pass the amendment via written resolution by no later than 10 a.m. ET on Feb. 7. The class A, B-1 and B-3 noteholders already approved the amendment on Oct. 30.

U.S. Bank Trustees Ltd. is the trustee. Chenavari Credit Partners LLP is the investment manager.

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