Duchess VI CLO to redeem notes on Feb. 28; fee being held in reserve

By Wendy Van Sickle

Columbus, Ohio, Feb. 13 – Duchess VI CLO BV will redeem its notes due 2023 on Feb. 28, according to a notice, which also gave an update on the question of how any incentive collateral management fee should be calculated.

The following notes will be redeemed:

• €150 million first-priority senior secured floating-rate variable funding notes;

• €190 million class A-1 first-priority senior secured floating-rate notes (ISIN: XS0275879921 and XS0279334915);

• €35 million class B second-priority deferrable secured floating-rate notes (ISIN: XS0275880853 and XS0279336456);

• €25 million class C third-priority deferrable secured floating-rate notes (ISIN: XS0275881232 and XS0279337421);

• €32.5 million class D fourth-priority deferrable secured floating-rate notes (ISIN: XS0275881828 and XS0279338155);

• €15 million class E fifth-priority deferrable secured floating rate notes (ISIN: XS0275882479 and XS0279339120);

• €52.5 million class F secured income notes (ISIN: XS0275882800 and XS0279330995);

• €500,000 class J combination notes (ISIN: XS0275883287 and XS0279332264);

• €10 million class O combination notes (ISIN: XS0277795653 and XS0279343072); and

• €7 million class W combination notes (ISIN: XS0277304001 and XS0279343585).

The issuer said that, after notice of the redemption was initially given on Feb. 3, a question arose as to how any incentive collateral management fee should be calculated under the enforcement proceeds priority of payments.

The collateral manager requested the collateral administrator to reserve the amount claimed by the collateral manager as being due in respect of the incentive collateral management fee from the amounts to be distributed by the collateral administrator on the redemption date.

As a result of that request, the reserve will not distributed on the redemption date, pending the determination of the correct interpretation of the relevant provisions as referred to above.

The exact amount of the reserve will depend on the amount of the incentive collateral management fee claimed by the collateral manager in connection with the enforcement proceeds priority of payments and is expected to be no more than €5.5 million.

Deutsche Trustee Co. Ltd. is the trustee.

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