15bn, extends the facility's maturity date to 29 June 2018, reduces the over-collateralization
requirement and provides increased flexibility for AFC to offer a broader array of term structures to its dealer customers.
With respect to more speculative streams of income, use of over-collateralization
techniques permit the inclusion of properties such as multi-tenanted office buildings and hotels.
However the transaction's structure allows for senior classes to establish over-collateralization
which provides additional credit protection.
In addition, the transaction benefits from a reserve account ($2,468,240), over-collateralization
($2,563,419), and expected booked residual realizations.
20% initial and target over-collateralization
(OC) and the benefit of monthly excess cash flow to absorb losses.
(OC) ratios of all classes have remained the same since close while the interest coverage (IC) ratios have improved over the same period.
00% privately offered, non-rated class B-3 and over-collateralization
The upgrades are the result of increased over-collateralization
(OC) and increased credit enhancement due to the deleveraging of the senior credit facility.
Based on the diversity of the fund's portfolio, the cushion of the over-collateralization
tests, the conservative valuation of the semi-liquid and illiquid investments and the experience of GTCP in the high-yield loan, mezzanine and special situation asset classes, Fitch affirms all of the rated liabilities issued by GoldenTree High Yield Opportunities II, L.
90% initial over-collateralization
(OC), and the 5.
In the US, the impact of any AFC shortfalls within a synthetic CDO would most likely felt by equity holders or junior classes in the form of reduced returns while credit enhancement in the form of over-collateralization
typically would be unaffected.
tests have also remained stable at passing levels for each class.