Examples of TRS Agreement in a sentence
Portfolio AssetsAssets identified by the TRS Counterparties as ROs from time to time in accordance with the terms of the relevant TRS Agreement, which will be purchased by the Issuer with the net issue proceeds of the Bonds together with, in respect of each Portfolio Asset, an Initial OC Payment provided by the relevant TRS Counterparty.
Each TRS Counterparty may substitute or replace ROs in accordance with the terms of the relevant TRS Agreement as a result of which the Issuer, in order to maintain its hedging position, shall substitute or replace the Portfolio Assets which are Equivalent to such ROs.21.
INTRODUCTION Reference is made to the announcement of the Company dated 2 July 2021 in relation to the First Subscription Agreement and the Original TRS Agreement.
It is contemplated that the Series 2018-1 Swap Amendment Agreement will remain in place to hedge any LIBOR exposure under the TRS Agreement and that if and when the TRS Agreement is transitioned to SONIA, the Series 2018-1 Swap Amendment Agreement will be cancelled (as set out in the Extraordinary Resolution).
In addition, Natixis was also considered a “deemed connected person” of the Company under the First Subscription Agreement and the Original TRS Agreement.
The TRS Counterparty will have responsibility for sourcing the relevant RMBS Issuer Assets and will have the on-going right to add, remove or substitute ROs pursuant to the terms of the TRS Agreement (which shall require the addition, removal or substitution of the corresponding RMBS Issuer Assets), as long as they comply with the Eligibility Criteria described in the section “The Portfolio” below.
It is also proposed that the Covered Bond Swap in respect of the Series 2018-1 Covered Bonds will be amended and restated to provide a hedge against the possible variances between Compounded Daily SONIA payable under the Series 2018-1 Covered Bonds and LIBOR payable under the TRS Agreement.
The transactions contemplated under the Subscription Agreement, the Loan Agreement, the TRS Agreement and the Debt Assumption are therefore subject to reporting, announcement and Independent Shareholders’ approval requirements under Chapter 14A of the Listing Rules.
In the event that any of those parties fails to perform its obligations under the relevant agreement to which it is a party, the ability of the Issuer to make payments under the Bonds and/or the TRS Agreement may be affected.Bondholders are exposed to credit risk in respect of the performance by the Paying Agents (and any other Agents or persons who receive assets from or on behalf of the Issuer for the purposes of making onward payment or deliveries to Bondholders) of their respective duties.
As the completion of the Amended and Restated TRS Agreement is subject to the fulfillment of the relevant conditions precedent as set out therein, the transactions may or may not proceed.