Glossary

Junior share class that bears the first losses, as described in section “Subordination Waterfall,” and is subordinated to B shares, A shares, and notes; usually subscribed by donors

Supervisory authority of the financial sector in Luxembourg responsible for the supervision of credit institutions, other professionals in the financial sector, undertakings for collective investment, pension funds, SICARs, securitization undertakings issuing securities to the public on a continuous basis, regulated markets and their operators, multilateral trading facilities, and payment institutions. It also supervises the securities markets, including their operators.

Maximum amount contributed or agreed to be contributed by all investors

A loan covenant is a condition that requires the borrower to fulfill certain conditions, forbids the borrower from undertaking certain actions, or possibly restricts certain activities to circumstances when other conditions are met. Typically, violation of a covenant may result in a default on the loan being declared, penalties being applied, or the loan being called. Covenants are undertakings given by a borrower as part of a term loan agreement. Their purpose is to help the lender ensure that the risk attached to the loan does not unexpectedly deteriorate prior to maturity.

Specialized financial institution responsible for safeguarding financial assets