Document:

bcpl-ex108_278.htm

Exhibit 10.8

 

MASTER PARTICIPATION AND ASSIGNMENT AGREEMENT

Master Participation and Assignment Agreement (as amended from time to time, this “Agreement”), dated as of December 16, 2019, between BC Partners Lending Corporation, a corporation incorporated under the law of the State of Maryland (the “Sole Shareholder”), and Great Lakes BCPL Funding Ltd., an exempted company incorporated with limited liability under the laws of the Cayman Islands (the “Issuer”).

RECITALS

WHEREAS, the Sole Shareholder owns certain loans (the “Collateral Obligations”) and the Issuer desires to purchase certain of such Collateral Obligations and/or portions thereof as set forth on Annex A hereto;

WHEREAS, the Issuer and the Sole Shareholder, inter alia, have entered into that certain Issuer Sale and Contribution Agreement (as amended from time to time, the “Issuer Sale and Contribution Agreement”), dated as of December 16, 2019, pursuant to which the Sole Shareholder has agreed to sell certain loans, including the Transferred Assets, to the Issuer, subject to the terms and conditions set forth in the Issuer Sale and Contribution Agreement and, with respect to the Transferred Assets that will be Closing Date Participation Interests until elevated to assignments, as set forth herein and subject to the terms of the Indenture;

WHEREAS, the settlement of the acquisition of the Transferred Assets by the Issuer from the Sole Shareholder shall occur, solely for administrative convenience, pursuant to and in accordance with this Agreement whereby the Sole Shareholder will (i) grant a participation interest in each Transferred Asset directly to the Issuer pursuant to Section 2.01 and (ii) thereafter cause an assignment of each such Transferred Asset to be delivered to the Issuer so that the Issuer becomes the record owner of such Transferred Asset pursuant to Section 2.05; 

WHEREAS, such grant by the Sole Shareholder and acquisition by the Issuer of such participation interest in each Transferred Asset is referred to herein as the “Transfer” of such Transferred Asset; and

WHEREAS, with respect to any Transferred Asset, the Sole Shareholder and the Issuer will cause the relevant participation to be elevated to an assignment as soon as practicable, pursuant to the provisions of Section 2.05, after the Settlement Date.  Such elevation is referred to herein as the “Elevation” with respect to any Transferred Asset, and the date of any Elevation of such Transferred Asset is referred to herein as the related “Elevation Date”. 

 

 

AGREEMENT

Accordingly, in consideration of the mutual agreements set forth herein and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows.  

ARTICLE I

Definitions

SECTION 1.01Certain Definitions; Interpretation.

(a)Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Issuer Sale and Contribution Agreement or, if not defined therein, in the Indenture. In addition, as used herein, the following defined terms, unless the context otherwise requires, shall have the following meanings (to the extent not otherwise defined herein): 

“Agreement” has the meaning specified in the Preamble.

“Business Day” has the meaning specified in the Indenture. 

“Collateral Manager” means Sole Shareholder, in its capacity as collateral manager under the Collateral Management Agreement, dated as of December 16, 2019, by and between the Issuer and Sole Shareholder, in its capacity as collateral manager.

“Collateral Obligations” has the meaning specified in the Recitals. 

“Elevation” has the meaning specified in the Recitals.

“Elevation Date” has the meaning specified in the Recitals.

“Excluded Amounts” means (a) any amount received by, on or with respect to any Collateral Obligation, which amount is attributable to the payment of any tax, fee or other charge imposed by any Governmental Authority on such Collateral Obligation, (b) any amount representing escrows relating to taxes, insurance and other amounts in connection with any Collateral Obligation which is held in an escrow account for the benefit of the related Obligor and the secured party pursuant to escrow arrangements, (c) [reserved], (d) any accrued and unpaid interest on any Collateral Obligation with respect to the period of time prior to and excluding the Settlement Date.

“Indenture” means the Indenture, dated as of December 16, 2019 (as amended, modified, restated or supplemented from time to time), between the Issuer, U.S. Bank National Association, a national banking association, as trustee (herein, together with its permitted successors and assigns in the trusts thereunder, the “Trustee”). 

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“Interest Proceeds” means, with respect to any Transferred Asset, any scheduled or unscheduled payment or prepayment of interest, fees and other similar amounts (for the avoidance of doubt, such other payments shall not include principal payments) received or allocated as interest respect of any such Transferred Asset. 

“Issuer” has the meaning specified in the Preamble.

“Issuer Sale and Contribution Agreement” has the meaning specified in the Recitals.

 “Participation Interest” and “Participation Interests” have the meanings specified in Section 2.01.

“Participation Percentage” means, with respect to each Collateral Obligation, the percentage set forth on Annex A hereto representing the percentage portion of such Collateral Obligation conveyed to the Issuer by the Sole Shareholder pursuant to the terms of this Agreement.

“Proceeding” means any suit in equity, action at law or other judicial or administrative proceeding thereof.

“Principal Proceeds” means, with respect to any Transferred Asset, any scheduled or unscheduled payment or prepayment of principal (including net sale proceeds) received or allocated as principal in respect of any such Transferred Asset. 

“Pro Rata Share” means, with respect to any amount, as of any date of determination, the product obtained by multiplying such amount by the applicable Participation Percentage.

“Representing Party” has the meaning specified in Section 3.01.

“Settlement Date” means December 18, 2019.

“Sole Shareholder” has the meaning specified in the Preamble.

“Transfer” has the meaning specified in the Recitals.

“Transferred Assets” means the Collateral Obligations (excluding any Excluded Amounts) or portions thereof (if less than 100%) equal to the applicable Participation Percentage of each such Collateral Obligation conveyed by the Sole Shareholder to the Issuer hereunder, in each case as set forth on Annex A hereto.

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(b)In this Agreement, unless a contrary intention appears:

(i)the singular number includes the plural number and vice versa;

(ii)reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by the Transaction Documents;

(iii)reference to any gender includes each other gender;

(iv)reference to day or days without further qualification means calendar days;

(v)unless otherwise stated, reference to any time means New York, New York time;

(vi)references to “writing” include printing, typing, lithography, electronic or other means of reproducing words in a visible form;

(vii)reference to any agreement (including any Transaction Document), document or instrument means such agreement, document or instrument as amended, modified, supplemented, replaced, restated, waived or extended and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of the other Transaction Documents, and reference to any promissory note includes any promissory note that is an extension or renewal thereof or a substitute or replacement therefor; 

(viii)reference to any requirement of law means such requirement of law as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder and reference to any Section or other provision of any requirement of law means that provision of such requirement of law from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such Section or other provision; and

(ix)references to “including” means “including, without limitation”.

(c)The titles of Articles and Sections hereof are for convenience only, and they neither form a part of this Agreement nor are to be used in the construction or interpretation hereof.

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ARTICLE II
Transfer

SECTION 2.01Transfer.  Upon the terms and subject to the conditions hereof on the Settlement Date, the Sole Shareholder hereby irrevocably grants to the Issuer, and the Issuer hereby acquires from the Sole Shareholder, an undivided participation interest in each Transferred Asset, which interest shall be understood to include all of the Sole Shareholder’s right, title, benefit and interest in and to the Pro Rata Share of any interest accruing from and after the Settlement Date, any Interest Proceeds and Principal Proceeds to the extent provided in Section 2.02 and, to the extent permitted to be transferred under applicable law and under the applicable transfer document or assignment agreement (or, in the case of any Underlying Instrument that is in the form of a note, any chain of endorsement) executed and delivered in connection with a Transferred Asset, all claims, causes of action and any other right of the Sole Shareholder (in its capacity as a lender under such documentation), whether known or unknown, against any Obligor or any of its affiliates, agents, representatives, contractors, advisors or other Person arising under or in connection with such documentation or that is in any way based on or related to any of the foregoing or the loan transactions governed thereby, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and purchased pursuant to this Agreement (each, a “Participation Interest” and, collectively, the “Participation Interests”), upon the terms and subject to the conditions set forth in this Agreement.  The Issuer hereby assumes all obligations and liabilities of the Sole Shareholder as lender with respect to or in connection with each related Participation Interest arising or occurring on or after the Settlement Date.  The consideration for the transfer of the Participation Interests from the Sole Shareholder to the Issuer shall consist of the consideration set forth in the Issuer Sale and Contribution Agreement.  The purchase price for each Collateral Obligation sold pursuant to this Agreement shall be equal to the fair market value thereof as determined by the Sole Shareholder and the Issuer and shall be on terms no less favorable to the Issuer than the Issuer would then obtain in a comparable arm’s length transaction with a person that is not an Affiliate. The Participation Interests are certain of the “Closing Date Participation Interests” referred to in the Issuer Sale and Contribution Agreement and in the Indenture.

SECTION 2.02Interest Proceeds and Principal Proceeds; Payments of Interest Proceeds and Principal Proceeds and Other Payments Received After the Settlement Date.

(a)With respect to each Transferred Asset, the Issuer shall acquire its Pro Rata Share of all rights to Interest Proceeds and Principal Proceeds that, as of the Settlement Date, are accrued but unpaid with respect to the period from and after the Settlement Date (which, for the avoidance of doubt, shall not include any Excluded Amounts).

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(b)If at any time after the Settlement Date the Sole Shareholder receives any Interest Proceeds or Principal Proceeds (in each case, other than any Excluded Amounts) in respect of the Transferred Assets, the Sole Shareholder shall deliver (or cause to be delivered) promptly to the Issuer its Pro Rata Share of such Interest Proceeds and Principal Proceeds.  If at any time after the Settlement Date the Sole Shareholder receives any other payment (including principal, interest (to the extent relating to the period from and after the Settlement Date) or any other amount) with respect to a Transferred Asset, the Sole Shareholder shall hold such amount in trust for the Issuer and shall deliver (or cause to be delivered) promptly to the Issuer its Pro Rata Share of such payment, and in the case of any such payment of interest, the Sole Shareholder shall provide (or cause to be provided) a written notice to the Issuer at the time of such delivery setting forth calculations and certifying as to the portion of any interest received that relates to the period from and after the Settlement Date.

(c)Without limiting the foregoing, the Sole Shareholder agrees (a) until the Elevation of each Transferred Asset has been completed, to maintain its existing custodial arrangements and bank accounts established to receive proceeds of such Transferred Asset and (b) to remit (or cause to be remitted) to the Issuer, promptly (but not more than two Business Days) after receipt of such payment and identification thereof, the Issuer’s Pro Rata Share of each payment received in connection with each Transferred Asset to which the Issuer is entitled in accordance with Section 2.01.  If the Sole Shareholder is dissolved, notwithstanding the foregoing, the Participation Interests in each of the Transferred Assets shall elevate automatically and immediately to an assignment and all of the Sole Shareholder's rights, title, interests and ownership of such Transferred Assets shall vest in the Issuer.   The Sole Shareholder acknowledges that from and after the Settlement Date it shall have no equitable or beneficial interest in the Pro Rata Share of any payment received by it with respect to any Transferred Asset (other than any Excluded Amounts).  

SECTION 2.03Treatment of Transfer; Backup Grant of Security Interest.

(a)Each party hereto (i) agrees that each Transfer shall be a sale or contribution of a participation interest in the relevant Transferred Asset for all relevant purposes (other than tax and accounting purposes), (ii) intends, and has as its business objective, that each Transfer be an absolute and irrevocable transfer, without reservation or retention of ownership whatsoever by the Sole Shareholder of the Transferred Assets, and not be a transfer as security for a loan, (iii) agrees and acknowledges that the Sole Shareholder shall have no right hereunder to reacquire any Transferred Asset and the Issuer shall be entitled to dispose of any such Transferred Asset in its discretion and shall have no duty or obligation to account to the Sole Shareholder in respect thereof nor any recourse to the Sole Shareholder in connection with any such disposition, and (iv) each Transfer and any subsequent assignment of the Sole Shareholder's interest in the relevant Transferred Asset shall constitute assets owned by the Issuer, and not part of the Sole Shareholder’s estate, in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy or similar law. The relationship between the Sole Shareholder and the Issuer shall be that of seller and buyer.  Neither party is a trustee or agent for the other party, nor does either party have any fiduciary obligations to the other party.  This Agreement shall not be construed to create a partnership or joint venture between the parties hereto.

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(b)If, notwithstanding such intention, any Transfer is characterized by a court of competent jurisdiction as a transfer as security for a loan rather than a sale of a participation interest in the relevant Transferred Asset, or any Transfer shall for any reason be ineffective to transfer to the Issuer all of the Sole Shareholder’s right, title and interest in any Transferred Asset (including the Interest Proceeds and Principal Proceeds by it with respect to such Transferred Asset), then the Sole Shareholder shall be deemed to have granted to the Issuer, and the Sole Shareholder hereby grants to the Issuer, a first priority perfected security interest in and lien on all the Sole Shareholder’s right, title and interest in and to such Transferred Asset (including the Issuer’s Pro Rata Share of any Interest Proceeds and Principal Proceeds received by the Sole Shareholder with respect to such Transferred Asset), whether now existing or hereafter acquired, in order to secure such loan and all other obligations of the Sole Shareholder hereunder.

(c)After the Settlement Date, the Sole Shareholder shall record in the Sole Shareholder’s books and records the fact that the Sole Shareholder is no longer the beneficial owner of the Transferred Assets conveyed to the Issuer hereunder and, after the relevant Elevation Date with respect to any Transferred Asset, the Sole Shareholder shall record in the Sole Shareholder’s books and records the fact that the Sole Shareholder is no longer the record owner or beneficial owner of such Transferred Asset.  After the Settlement Date, the Issuer shall record in the Issuer’s books and records that fact that the Issuer is the beneficial owner of the Transferred Assets and, after the relevant Elevation Date with respect to any Transferred Asset, the Issuer shall record in the Issuer’s books and records the fact that the Issuer is the record owner and beneficial owner of such Transferred Asset.  

(d)The Sole Shareholder consents to the filing of a UCC-1 financing statement on or about the date of hereof against it in favor of the Issuer as secured party and the Sole Shareholder as debtor in connection with the transfer of the Transferred Assets from Seller to Buyer on the Settlement Date.

 

SECTION 2.04Documents; Exercise of Rights and Remedies; Indemnification.  

(a)Prior to Elevation, the Sole Shareholder shall furnish to the Issuer (or its collateral administrator) copies of any Underlying Instruments and applicable credit documentation in its possession in respect of a Transferred Asset and, as and when available to the Sole Shareholder (without prejudice to Section 2.05(b)), a copy of each transfer document or assignment agreement (or, in the case of any Underlying Instrument that is in the form of a note, any chain of endorsement), amendment, consent or waiver in connection with any such documentation, provided that the Sole Shareholder is not prohibited from doing so under the related Underlying Instruments or applicable credit documentation after taking into account the next sentence.  The Issuer agrees that it shall maintain the confidentiality of any such documents to the extent required therein and to the same extent as if it were a party thereto and shall, upon the Sole Shareholder’s request, provide to the Sole Shareholder a confidentiality undertaking to such effect in accordance with the terms of the such documentation prior to the delivery thereof.

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(b)From and after the Settlement Date, the Sole Shareholder agrees to promptly forward to the Issuer and the Collateral Manager all notices, requests, reports and communications of any nature received from any Person with respect to each Transferred Asset.  Unless restricted or prohibited under applicable law, rule, order or the relevant Underlying Instruments and/or credit documentation, the Sole Shareholder will not exercise any voting, consent or other right or remedy, or take or refrain from taking any action, in each case with respect to any Transferred Asset, except as directed by the Issuer.  

(c)The Issuer shall reimburse the Sole Shareholder for any and all liabilities, obligations, actual losses, actual damages, penalties, actions, judgments, suits, costs, expenses, and disbursements, including legal fees, which may be incurred or made by the Sole Shareholder in connection with any such action so taken by the Sole Shareholder for which the Sole Shareholder is not reimbursed at any time by or on behalf of any Obligor under any applicable Underlying Instruments or credit documentation (other than any amounts thereof resulting from the Sole Shareholder’s gross negligence or willful misconduct). In no event will the Issuer reimburse the Sole Shareholder for any special, indirect, consequential or punitive damages in respect to any claim hereunder, whether or not known or suspected, unless any such special, indirect, consequential or punitive damages are actually incurred by or are payable by the Sole Shareholder.  In no event will the Sole Shareholder reimburse the Issuer for any special, indirect, consequential or punitive damages in respect to any claim hereunder, whether or not known or suspected, unless any such special, indirect, consequential or punitive damages are actually incurred by or are payable by the Issuer.

SECTION 2.05Elevation.

(a)Subject to the terms and provisions of the applicable Transferred Assets and of applicable law, the Sole Shareholder shall use commercially reasonable efforts to effect an Elevation, as soon as reasonably practicable, with respect to each such Transferred Asset and take such action (including the execution and delivery of any transfer document or assignment agreement (or, in the case of any Underlying Instrument that is in the form of a note, any chain of endorsement)) as shall be reasonably necessary in connection therewith and in accordance with the terms and conditions of each such Transferred Asset and consistent with the terms of this Agreement.  The Sole Shareholder has prepared, or will prepare prior to the Settlement Date, individual assignments (or a master assignment) consistent with the requirements of the related Underlying Instruments and provided them to the Persons required under such Underlying Instruments, which assignments will become effective in accordance with such Underlying Instruments upon obtaining certain consents thereto or upon the passage of time or both. The Sole Shareholder shall pay any transfer fees and other expenses payable in connection with an Elevation and the Issuer will reimburse the Sole Shareholder for such fees and expenses, or any portion thereof, after receipt of an invoice therefor from the Sole Shareholder detailing such amounts. The Issuer shall be responsible for any expenses of administering each Transferred Asset prior to its Elevation.  At Elevation, the Sole Shareholder shall deliver such assignment and the credit documentation with respect to the related Transferred Asset in its possession to or as directed by the Issuer.  The Issuer and the Sole 

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Shareholder acknowledge and agree that, solely for administrative convenience, any transfer document or assignment agreement (or, in the case of any Underlying Instrument that is in the form of a note, any chain of endorsement) required to be executed and delivered in connection with the transfer of a Transferred Asset in accordance with the terms of any related Underlying Instruments may reflect that (i) the Sole Shareholder is assigning such Transferred Asset directly to the Issuer or (ii) the Issuer is acquiring such Transferred Asset at the closing of such Transferred Asset.  Nothing in any such transfer document or assignment agreement (or, in the case of any Underlying Instrument that is in the form of a note, nothing in such chain of endorsement) shall be deemed to impair the transfers of the Transferred Assets by the Sole Shareholder to the Issuer in accordance with the terms of this Agreement.

(b)The Sole Shareholder shall (so far as the same is within its power and control) maintain its existence as a Maryland Corporation, and shall not consolidate or merge with or into any other Person or transfer or convey all or substantially all of its assets to any Person, in each case, until an Elevation has been effected with respect to each Transferred Asset.  Upon the execution of this Agreement, the Sole Shareholder shall be deemed to have consented and agreed to the Elevation with respect to each of the Transferred Assets.  The Sole Shareholder agrees that, following any such date, the Issuer shall be permitted to take any and all action necessary to effectuate an Elevation and/or finalize an assignment of any of the Transferred Assets, and in furtherance of the foregoing, effective immediately upon such date, the Sole Shareholder hereby makes, constitutes and appoints the Issuer, with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead, to sign, execute, certify, swear to, acknowledge, deliver, file, receive and record any and all documents that the Issuer reasonably deems appropriate or necessary in connection with any Elevation or finalization of an assignment of any of the Transferred Assets. In addition, the Sole Shareholder, effective as of the Settlement Date, hereby makes, constitutes and appoints the Issuer, with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead, to sign, execute, certify, swear to, acknowledge, deliver, file, receive and record any and all documents that the Issuer reasonably deems appropriate or necessary to direct the applicable Obligor or agent bank with respect to any Transferred Asset  to deposit directly into the Collection Account the Issuer’s Pro Rata Share of Interest Proceeds and Principal Proceeds in respect of any Transferred Asset.  The foregoing powers of attorney are hereby declared to be irrevocable and a power coupled with an interest, and shall survive and not be affected by the bankruptcy or insolvency or dissolution of the Sole Shareholder.

SECTION 2.06Release of Excluded Amounts.  The parties acknowledge and agree that the Issuer has no interest in the Excluded Amounts.  Promptly upon the receipt by or release to the Issuer of any Excluded Amounts, the Issuer hereby irrevocably agrees to deliver and release to (or as directed by) the Sole Shareholder such Excluded Amounts, which release shall be automatic and shall require no further act by the Issuer; provided that the Issuer agrees that it will execute and deliver such instruments of release and assignment or other documents, or otherwise confirm the foregoing release of such Excluded Amounts, as may be reasonably requested by the Sole Shareholder in writing.

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SECTION 2.07Conduct of Business.  The Sole Shareholder represents, warrants and undertakes that, from and after the Settlement Date, it will not engage in any activities with respect to the Transferred Assets other than holding record ownership of the Transferred Assets, receiving payments in respect of the Transferred Assets and remitting (or causing to be remitted) to the Issuer its Pro Rata Share of such payments as required hereunder, effecting Elevations with respect to the Transferred Assets and performing its other agreements hereunder with respect to such Transferred Assets.  The Sole Shareholder represents, warrants and undertakes that, from and after the date hereof, it shall not sell, grant a security interest in or lien on, or otherwise pledge, mortgage, hypothecate or encumber (or permit such to occur or suffer such to exist other than any security interest therein which will be released contemporaneously with the Transfer of such Transferred Asset hereunder and the grant of the security interest therein granted by the Sole Shareholder to the Issuer hereunder), any part of the Transferred Assets except for the grant of the Participation Interests to the Issuer as provided herein.  

SECTION 2.08Further Assurances.  Each party agrees to execute and deliver all such further documents as may be reasonably requested by the other party in order to effect each Transfer and each Elevation as contemplated hereby.

ARTICLE III
Representations and Warranties

SECTION 3.01Representations and Warranties of Each Party.  Each party hereto (each, the “Representing Party”) represents and warrants to the other party as follows:

(i)the Representing Party is duly incorporated or formed, as applicable, and validly existing as an entity and is in good standing under the laws of its jurisdiction of incorporation;

(ii)the Representing Party has the requisite power and authority to enter into and perform this Agreement;

(iii)this Agreement has been duly authorized by all necessary action on the part of the Representing Party, has been duly executed by the Representing Party and is the valid and binding agreement of the Representing Party enforceable against such party in accordance with its terms (subject to applicable bankruptcy, reorganization, insolvency, rehabilitation, conservation, moratorium or similar laws affecting rights of its creditors generally and subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in equity or at law));

(iv)the Representing Party is adequately capitalized in light of its contemplated business or activities;

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(v)no Transfer will be a transfer of property in connection with any preexisting indebtedness owed by the Sole Shareholder to the Issuer;

(vi)there are no agreements or understandings between the Representing Parties (other than this Agreement and the Issuer Sale and Contribution Agreement) relating to or affecting the Transfer or the Transferred Assets and the proceeds thereof;

(vii)the Representing Party conducts its business or activities solely in its own name;

(viii)the Representing Party provides for the payment of its expenses and liabilities from its own funds;

(ix)as of the date hereof and immediately prior the effectiveness this Agreement, Representing Party has not guaranteed and is not otherwise contractually liable for the payment of any liability of the other party;

(x)neither the assets nor the creditworthiness of the Representing Party is generally held out as being available for the payment of any liability of the other party;

(xi)the Representing Party maintains an arm’s-length relationship with the other party;

(xii)the Representing Party maintains separate financial records that enable its assets to be readily ascertained as separate and apart from those of the other party;

(xiii)the Representing Party’s funds are not commingled with those of the other party; and

(xiv)none of the execution, delivery and performance of this Agreement by the Representing Party will:

	
 
	
(A)
	
conflict with, result in any breach of or constitute a default (or an event which, with the giving of notice or passage of time, or both, would constitute a default) under, any term or provision of the organizational documents of the Representing Party or any indenture, agreement, order, decree or other instrument to which the Representing Party is a party or by which the Representing Party is bound, which conflict, breach or default would have a material adverse effect with respect to the Representing Party; or

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(B)
	
violate any provision of any law, rule or regulation applicable to the Representing Party of any regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Representing Party or its properties, which violation would have a material adverse effect with respect to the Representing Party.

SECTION 3.02Representations and Warranties of the Sole Shareholder.  The Sole Shareholder represents and warrants to the Issuer as follows:

(i)Upon the Elevation on the relevant Elevation Date with respect to any Transferred Asset, the Issuer will receive good and marketable title to such Transferred Asset, free and clear of any pledge, lien, investment interest, charge, claim, equity or encumbrance of any kind created by the Sole Shareholder or any Person claiming through the Sole Shareholder.  The participation in each Transferred Asset granted hereunder will be granted by the Sole Shareholder to the Issuer free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest (other than any security interest therein which will be released contemporaneously with the Transfer of such Transferred Asset hereunder, the security interest granted hereunder by the Sole Shareholder to the Issuer and Sole Shareholder’s record ownership of the related Transferred Asset which, from and after the Settlement Date to and including the Elevation Date with respect thereto will be and remain free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest). There is no funding obligation in respect of the Transferred Assets that the Issuer is or shall be required to pay or otherwise perform that the Sole Shareholder has not paid or otherwise performed in full.

(ii)None of the execution, delivery and performance by the Sole Shareholder of this Agreement will adversely affect the nature of the title to any Transferred Asset received by the Issuer as provided in Section 3.02(i).

(iii)No consent, license, approval or authorization from, or registration or qualification with, any governmental body, agency or authority, nor any consent, approval, waiver or notification of any creditor or lessor is required in connection with the execution, delivery and performance by the Sole Shareholder of this Agreement, except (A) such as have been obtained and are in full force and effect or (B) those with respect to which the failure to obtain them would not have a material adverse effect with respect to the Sole Shareholder.

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(iv)The Sole Shareholder has valid business reasons for transferring the Transferred Assets to the Issuer rather than obtaining a secured loan with the Transferred Assets as collateral.  The Sole Shareholder is not effecting any Transfer in contemplation of the Sole Shareholder’s insolvency or with any actual intent to hinder, delay or defraud any of its creditors.

(v)All corporate actions of the Sole Shareholder, with respect to the transactions contemplated hereby, have been and will continue to be reflected in any minutes of the Sole Shareholder.

(vi)The Sole Shareholder has been solvent at all relevant times before each Transfer and will not be rendered insolvent by any Transfer.  Before the date hereof, the Sole Shareholder did not engage in or have plans to engage in any business or transaction as a result of which the total assets remaining with the Sole Shareholder would constitute an unreasonably small amount of capital.  The Sole Shareholder has not incurred and does not intend to incur, debts that would be beyond its ability to pay as they mature.

SECTION 3.03No Liability.  The Sole Shareholder makes no representation or warranty, express or implied, and assumes no responsibility, with respect to the genuineness, authorization, execution, delivery, validity, legality, value, sufficiency, perfection, priority, enforceability or collectability of any Underlying Instruments or credit documentation executed and delivered in connection with a Transferred Asset.  The Sole Shareholder assumes no responsibility for (except as otherwise expressly provided herein) (a) any representation or warranty made by, or the accuracy, completeness, correctness or sufficiency of any information (or the validity, completeness or adequate disclosure of assumptions underlying any estimates, forecasts or projections contained in such information) provided directly or indirectly by, any obligor in respect of a Transferred Asset or any Underlying Instruments or credit documentation thereof or by any other Person, (b) the performance or observance by any obligor of any of the provisions of any Underlying Instruments or credit documentation in respect of a Transferred Asset (whether on, before or after the Settlement Date), (c) the filing, recording, or taking of any action with respect to any Underlying Instruments or credit documentation in respect of a Transferred Asset, (d) the financial condition of any obligor in respect of a Transferred Asset or of any other Person or (e) any other matter whatsoever relating to any obligor in respect of a Transferred Asset, any other Person or the Transferred Assets.

In making, managing, handling and transferring the Transferred Assets, the Sole Shareholder shall exercise the same care as it normally exercises with respect to loans held for its own account, but the Sole Shareholder shall have no further responsibility to the Issuer except as expressly provided herein and except for its own gross negligence,  willful misconduct, fraud or bad faith which results in actual loss to the Issuer.

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ARTICLE IV

Miscellaneous

SECTION 4.01Amendments.  This Agreement may not be amended, altered, supplemented or otherwise modified, except by the execution and delivery of a written agreement by each of the parties hereto and the Administrative Agent.

SECTION 4.02Communications.  Except as may be otherwise agreed between the parties, all communications hereunder shall be made in writing to the relevant party by personal delivery or by courier or first-class mail by facsimile or email transmission as follows:

To the Sole Shareholder: to it at 650 Madison Avenue, 23rd Floor, New York, NY 10022, Attention: Joseph Barillaro, telephone no.: +1 (212) 796-1806 ,  email: Notices@bcpartners.com  

To the Issuer: to it at c/o MaplesFS Limited, P.O. Box 1093, Boundary Hall, Cricket Square, Grand Cayman, KY1-1102, Cayman Islands, Attention: The Directors, facsimile no.: +1 (345) 945-7100, telephone no.: +1 (345) 945-7099, email: cayman@maples.com or to such other address, telephone number or facsimile number as either party may notify to the other party in accordance with the terms hereof from time to time.  Any communications hereunder shall be effective upon receipt.

SECTION 4.03Governing Law; Waiver of Trial by Jury; Jurisdiction.  

(a)This Agreement shall be construed in accordance with the law of the State of New York, and this Agreement, and all matters arising out of or relating in any way whatsoever to this Agreement (whether in contract, tort or otherwise), shall be governed by such law without reference to its conflicts of laws provisions (other than Section 5-1401 of the New York General Obligations Law).

(b)EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. Each party hereto (i) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other parties hereto have been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section 4.03(b).

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(c)Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of any New York State or Federal court sitting in the Borough of Manhattan in The City of New York in any action or proceeding arising out of or relating this Agreement, and hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such New York State or Federal court. Each party hereto hereby irrevocably waives, to the fullest extent that it may legally do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. Each party hereto irrevocably consents to the service of any and all process in any action or proceeding by the mailing or delivery of copies of such process to it the address set forth in Section 4.02. Each party hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

SECTION 4.04Non-Petition; Limited Recourse.

(a)Notwithstanding any other provision of this Agreement, the Sole Shareholder agrees that it may not, prior to the date which is one year and one day (or if longer, any applicable preference period then in effect plus one day) after the payment in full of all Notes and any other debt obligations of the Issuer that have been rated upon issuance by any rating agency at the request of the Issuer, institute against, or join any other Person in instituting against, the Issuer any bankruptcy, reorganization, arrangement, insolvency, winding-up, moratorium or liquidation Proceedings, or other Proceedings under U.S. federal or state bankruptcy or similar laws.  Nothing in this Section 4.04(a) shall preclude, or be deemed to stop, the Sole Shareholder:

(i)from taking any action prior to the expiration of the aforementioned period in (A) any case or Proceeding voluntarily filed or commenced by the Issuer or (B) any involuntary insolvency Proceeding filed or commenced by a Person other than the Issuer; or

(ii)from commencing against the Issuer or any of its properties any legal action which is not a bankruptcy, reorganization, arrangement, insolvency, winding-up, moratorium or liquidation Proceeding.

SECTION 4.05Parties Benefited.

(a)This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  Neither this Agreement nor any right or obligation in or under this Agreement may be transferred (whether by way of security or otherwise) or delegated by either party without the prior written consent of the other party, except that (i) a party may make a transfer of all (but not less than all) of its rights and obligations under this Agreement pursuant to a consolidation or amalgamation with, or merger with or into, or transfer of all or substantially all its assets to, another entity, and (ii) the Issuer may assign and transfer its rights hereunder to the Trustee under the Indenture.  Any purported transfer that is not in compliance with this provision will be void.

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SECTION 4.06Severability.  If any term, provision, covenant or condition of this Agreement, or the application thereof to the Sole Shareholder or the Issuer or any circumstance, is held to be unenforceable, invalid or illegal (in whole or in part) for any reason (in any relevant jurisdiction), the remaining terms, provisions, covenants and conditions of this Agreement, modified by the deletion of the unenforceable, invalid or illegal portion (in any relevant jurisdiction), will continue in full force and effect, and such unenforceability, invalidity, or illegality will not otherwise affect the enforceability, validity or legality of the remaining terms, provisions, covenants and conditions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the Sole Shareholder and the Issuer as to the subject matter hereof and the deletion of such portion of this Agreement will not substantially impair the respective expectations of the Sole Shareholder and the Issuer or the practical realization of the benefits hereof that would otherwise be conferred upon the Sole Shareholder and the Issuer.  The Sole Shareholder and the Issuer will endeavor in good faith to replace the prohibited or unenforceable provision with a valid provision, the economic effect of which comes as close as possible to that of the prohibited or unenforceable provision.

SECTION 4.07Counterparts.  This Agreement (and each amendment, modification and waiver in respect of it) may be executed in any number of counterparts (including by facsimile transmission or other form of electronic transmission), each of which shall be an original, but all of which together shall constitute one and the same agreement.  Delivery of an executed counterpart signature page of this Agreement by facsimile transmission or by electronic transmission (.pdf) shall be effective as delivery of a manually executed counterpart of this Agreement.

- Signature Page Follows -

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as a deed as of the date first written above.

 

	
BC Partners Lending Corporation,

	
as Sole Shareholder

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Edward Gilpin
	
 

	
 
	
 
	
Name: Edward Gilpin
	
 

	
 
	
 
	
Title: Chief Financial Officer
	
 

	
 
	
 
	
 
	
 

 

	
Great Lakes BCPL Funding Ltd.,

	
as Issuer

	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Pamela Sen-Gupta
	
 

	
 
	
 
	
Name: Pamela Sen-Gupta
	
 

	
 
	
 
	
Title: Director
	
 

	
 
	
 
	
 
	
 

 

 

 

Master Participation and Assignment Agreement – Signature Page

 

ANNEX A

 

SCHEDULE OF TRANSFERRED ASSETS

 

	
Obligor/Issuer
	
Loan ID
	
Stated 

Maturity
	
Notional Amount of Obligations 

(in USD$) 

	
Acrisure
	
LX169343
	
11/22/2023
	
1,500,000 

	
Drilling Info Holdings, Inc
	
LX174828
	
7/30/2025
	
1,000,000 

	
Dun & Bradstreet
	
LX178432
	
2/6/2026
	
1,500,000 

	
Location Services LLC
	
LM000159
	
11/7/2022
	
791,667

	
Pharmalogic Holdings Corp.
	
LM000163
	
6/12/2023
	
1,000,000 

	
PHI Group, Inc.
	
LX181308
	
7/10/2024
	
1,457,433 

	
Phoenix Towers US Holdings
	
LM000151
	
12/24/2023
	
1,000,000 

	
Premier Imaging, LLC
	
LM000162
	
1/2/2025
	
2,000,000 

	
Radiology Partners
	
LX174270
	
7/9/2025
	
1,500,000 

	
SePRO Corporation
	
LM000149
	
2/7/2025
	
1,000,000 

	
SOS Security Holdings LLC
	
LM000153
	
4/30/2025
	
1,500,000 

	
Teneo
	
LX181075 
	
7/11/2025
	
1,000,000 

	
TLE Holdings, LLC
	
LM000160
	
6/28/2024
	
1,000,000 

	
Wonder Love, Inc.
	
LM000158
	
11/18/2024
	
1,000,000bcpl-ex109_143.htm

Exhibit 10.9

EXECUTION VERSION

Subscription Agreement

December 16, 2019

 

BC Partners Lending Corporation

650 Madison Avenue,

23rd Floor

New York, NY 10022

Great Lakes BCPL Funding Ltd., an exempted company incorporated with limited liability under the law of the Cayman Islands (the "Issuer"), proposes to issue and sell on December 18, 2019 the ("Closing Date"), Class A Notes with an original aggregate stated face amount of U.S.$76,923,077 pursuant to the Indenture, dated as of December 16, 2019 (the "Indenture"), between the Issuer and U.S. Bank National Association, as trustee (the "Trustee"). Capitalized terms used but not defined herein have the respective meanings given to such terms in the Indenture.

Subject to the terms and conditions set forth herein and in the Indenture, the Issuer proposes to issue and sell the Subject Notes to the undersigned (the "Investor"), and the Investor proposes to purchase the Subject Notes from the Issuer, on a private placement basis pursuant to an exemption under Section 4(a)(2) of the United States Securities Act of 1933, as amended (the "Securities Act").

The Issuer intends to use the proceeds of the Subject Notes to invest in a portfolio of collateral obligations consisting primarily of U.S. dollar denominated Loans (or a Participation Interest therein) or Bonds.  

In connection with the acquisition (subject to the conditions hereof) by the Investor of the Subject Notes, the Investor hereby represents, warrants and agrees as follows:

1.Subscription

On the basis of the representations and warranties of the Issuer contained in the Indenture and the agreements contained in this Subscription Agreement (this "Agreement"), the Investor, intending to be legally bound, shall, subject to the issuance of the Notes on the Closing Date in accordance with the Indenture, subscribe, as of the Closing Date for Class A Notes with a stated aggregate principal amount equal to U.S.$76,923,077 and an initial aggregate principal amount of U.S.$30,769,231 (the "Initial Subject Notes"), at a purchase price (expressed as a percentage of par) of no less than U.S.$30,769,231, which purchase price shall include, among other consideration, the consideration set forth in Section 2(a) of the Issuer Sale and Contribution Agreement. Such acquisition shall occur on the Closing Date. 

With respect to the Initial Subject Notes, the Investor hereby directs the Issuer to cause the Class A Regulation S Global Note to be initially funded in an amount equal to the purchase price, to facilitate the resale of the Initial Subject Notes by the Investor to UBS AG, London branch on the Closing Date under the Global Master Repurchase Agreement. 

For the purposes of this Agreement, "Subject Notes" means the Initial Subject Notes.

2.Representations

The Investor represents that, as of the Signing Date and Closing Date:

	
(a)
	
It is duly formed, validly existing and in good standing under the law of the jurisdiction of its organization.

 

		
	
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(b)
	
It has the full power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement and it has taken all necessary action to authorize such execution, delivery and performance, and this Agreement has been duly executed and delivered by the Investor.

	
(c)
	
This Agreement constitutes a legal, valid and binding obligation of the Investor, enforceable against the Investor in accordance with its terms.

	
(d)
	
None of the execution and delivery of this Agreement, the consummation of the transactions herein contemplated or compliance with the terms and provisions hereof will result in a breach of, or require any consent under, the charter or by-laws (or equivalent constitutional documents) of the Investor, or any applicable law or regulation, or any order, writ, injunction or decree of any governmental authority, or any agreement or instrument to which the Investor is a party or by or to which it is bound or subject, or constitute a default under any such agreement or instrument.

	
(e)
	
The Investor has participated in the preparation and negotiation of the Indenture and other Transaction Documents.

	
(f)
	
No authorizations, approvals or consents of, and no filings or registrations with, any governmental authority are necessary for the execution, delivery or performance by the Investor of this Agreement or for the validity or enforceability hereof.

	
(g)
	
No oral or written representation has been made or furnished to the Investor or its advisors in connection with the transactions described herein that was or is in any way inconsistent with the information stated herein and in the Indenture or in the other Transaction Documents.

	
(h)
	
In making its decision to purchase Subject Notes, the Investor has relied solely on the information herein and in the Indenture and other Transaction Documents.

3.Securities Act Representation

As of the date hereof and the Closing Date, the Investor represents and warrants that it is (please check one as appropriate):

	
_ __
	
(a) a "qualified institutional buyer" as defined in Rule 144A under the Securities Act and it is acquiring the Subject Notes in reliance on an exemption from the registration requirements of the Securities Act and it is acquiring the Subject Notes for its own account or for one or more accounts, each of which is a qualified institutional buyer and as to each of which it exercises sole investment discretion; or

	
_X_
	
(b) an "accredited investor" as defined in Rule 501(a) of Regulation D under the Securities Act (an "Accredited Investor"), and it is acquiring the Subject Notes in reliance on an exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof and Regulation D thereunder and it is acquiring the Subject Notes (i) for its own account (and not for the account of any family or other trust, any family member or any other Person), (ii) for the account of a trust that is an Accredited Investor and the signatory hereto is the trustee of such trust or (iii) for one or more accounts, each of which is an Accredited Investor and the signatory hereto is an agent of each such account with express authority to execute this Agreement on behalf of each such account; or 

	
___
	
(c) a person that is not a "U.S. person" as defined in Regulation S under the Securities Act, and it is acquiring the Subject Notes in reliance on an exemption from registration pursuant to Regulation S and it is acquiring the Subject Notes for its own account or for one or more accounts, each of which is a non-U.S. person and as to each of which it exercises sole investment discretion.

 

		
	
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4.Investment Company Act Representation

	
(a)
	
If it has checked (a) in Section 3 above, as of the date hereof, and the Closing Date, it is (please check one as appropriate):

	
 
	
_X__
	
(i)a "qualified purchaser" for purposes of the United States Investment Company Act of 1940, as amended (the Investment Company Act); or

	
 
	
___
	
(ii) a company beneficially owned exclusively by one or more "qualified purchasers" with respect to the Issuer.

	
(b)
	
If it has checked (i) in clause (a) above, it has done so because it is (please also check appropriate line on the enclosed signature page):

	
 
	
___
	
(i)a natural person who owns not less than $5,000,000 in "investments," as such term has been defined in (and as the value of such investments are calculated pursuant to) the relevant rules promulgated by the U.S. Securities and Exchange Commission (the SEC) as of the date hereof;

	
 
	
___
	
(ii)a company that owns not less than $5,000,000 in "investments" and that is owned directly or indirectly by or for two or more natural persons who are related as siblings or spouses (including former spouses), or direct lineal descendants by birth or adoption, spouses of such persons, the estates of such persons, or foundations, charitable organizations, or trusts established by or for the benefit of such persons; 

	
 
	
___
	
(iii)a trust that is not covered by clause (ii) and that was not formed for the specific purpose of acquiring the securities offered, as to which the trustee or other person authorized to make decisions with respect to the trust, and each settlor or other person who contributed assets to the trust, is a person described in clause (i), (ii) or (iv); or

	
 
	
_X__
	
(iv)a person, acting for its own account or the accounts of other "qualified purchasers," who in the aggregate owns and invests on a discretionary basis, not less than $25,000,000 in "investments";

	
(c)
	
if it has checked (i) or (ii) in clause (a) above and if it (or, in the case of clause (ii) in clause (a) above, any beneficial owner thereof) would be an investment company but for the exclusions from the Investment Company Act provided by Section 3(c)(1) or Section 3(c)(7) thereof, (i) all of the beneficial owners of its (or such beneficial owner’s) outstanding securities (other than short-term paper) that acquired such securities on or before April 30, 1996 ("pre-amendment beneficial owners") have consented to its (or such beneficial owner’s) treatment as a "qualified purchaser" and (ii) all of the pre-amendment beneficial owners of a company that would be an investment company but for the exclusions from the Investment Company Act provided by Section 3(c)(1) or Section 3(c)(7) thereof and that directly or indirectly owned any of its (or such beneficial owner’s) outstanding securities (other than short-term paper) have consented to its (or such beneficial owner’s) treatment as a "qualified purchaser"; 

	
(d)
	
it (or, if it is acquiring the Subject Notes for any other account, each such account or, if it has checked (ii) in clause (a) above, each of its beneficial owners) (A) has made investments prior to the date hereof and was not formed or recapitalized solely for the purpose of investing in the Subject Notes; (B) is not a partnership, common trust fund, or special trust, pension, profit sharing or other retirement trust fund or plan in which the partners, beneficiaries or participants may designate the particular investments to be made; and (C) represents that all Subject Notes (together with any other securities of the Issuer) purchased and held directly or indirectly by it constitute in the aggregate an investment of no more than 40% of its assets or capital; and

 

		
	
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Page 3

 

 

	
(e)
	
it understands and agrees that any purported transfer of the Subject Notes to a purchaser that does not comply with the transfer restrictions to be applicable to the Subject Notes shall be void ab initio.

5.It understands that its entry into this Agreement and any investment in the Subject Notes involves certain risks, including the risk of loss of all or a substantial part of its investment under certain circumstances.  It has received a copy of the Indenture and other Transaction Documents, has reviewed them or had the opportunity to review them and has reviewed or had the opportunity to review financial and other information concerning (a) the Issuer, (b) the portfolio of loans and other assets held by the Issuer on the Closing Date (the "Closing Date Portfolio"), (c) the portfolio of loans and other assets already held by, or to be acquired by, the Issuer as of the Ramp-Up Period End Date (the "Ramp-Up Portfolio", and together with all other loans and assets to be held from time to time by the Issuer, the “Portfolio”), and (d) the Subject Notes, in each case, to the extent it determined necessary or appropriate in order to make an informed investment decision with respect to its entry into this Agreement and any investment in the Subject Notes, including an opportunity (at a reasonable time prior to the Investor's purchase of the Subject Notes) to ask questions and request information concerning the Issuer, the Closing Date Portfolio, the Ramp-Up Portfolio, the Portfolio and the Subject Notes.  It understands that (i) there is no assurance that the Closing Date will occur and (ii) the Subject Notes are highly illiquid and are not suitable for short-term trading, that no secondary market will develop and that the Subject Notes are a highly-leveraged investment in a portfolio consisting primarily of loans, which may expose the Subject Notes to disproportionately large losses.  Distributions on the Subject Notes are not guaranteed, but are dependent on the performance of the Portfolio and other assets or investments held by the Issuer.  It understands that, due to the structure of the transaction and the performance of the Portfolio and other assets or investments held by the Issuer, it is possible that payments on the Subject Notes may be deferred, reduced or eliminated entirely.  It understands that the holders of the Subject Notes are not entitled to a stated return on their investment and that the Issuer will have no significant assets other than the Portfolio, and distributions on the Subject Notes will be payable solely from and to the extent of the available proceeds from the Portfolio and other assets of the Issuer, in accordance with the Priority of Payments established under the Indenture.

6.It understands the Subject Notes will bear a legend setting forth the restrictions applicable to transfers of Subject Notes (and which are of a type described in the Indenture).  It acknowledges that significant restrictions will apply to transfers of Subject Notes (to be set forth in the Indenture), and such restrictions could adversely affect its ability to sell or otherwise dispose of the Subject Notes.  It is familiar with the types of such restrictions and confirms that its acquisition of the Subject Notes complies with such restrictions.  It understands that any purchaser or other transferee of any Subject Notes from it will be required to comply with such restrictions and that a certificate of such compliance (substantially in the form of the certificate attached as an exhibit to the Indenture) must be delivered in connection with any such sale or transfer of the Subject Notes in certificated form and that any transferee of a beneficial interest in the Subject Notes in the form of a Global Note will be deemed to have made certain representations and warranties with respect to itself and such transfer as described in the Indenture.  It confirms that it will provide notice of such restrictions and deemed representations and warranties to any prospective purchaser or other transferee.

 

		
	
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7.It understands that the Subject Notes will be offered only in a transaction not involving any public offering in the United States within the meaning of the Securities Act, the Subject Notes have not been and will not be registered under the Securities Act, and, if in the future it decides to offer, resell, pledge or otherwise transfer the Subject Notes, such Subject Notes may be offered, resold, pledged or otherwise transferred only in accordance with the provisions of the Indenture and the legends on such Notes, including (in certain cases) the requirement for written certifications.  In particular, it understands that the Subject Notes may be transferred only to (A) a Person that is (i) a "qualified purchaser" (as defined in the Investment Company Act) or a corporation, partnership, limited liability company or other entity (other than a trust) each shareholder, partner, member or other equity owner of which is a "qualified purchaser" with respect to the Issuer and (ii) a "qualified institutional buyer" as defined in Rule 144A under the Securities Act who purchases such Notes in reliance on an exemption from Securities Act registration provided by Rule 144A thereunder or (B) a person that is not a "U.S. person" as defined in Regulation S under the Securities Act and that is acquiring the Subject Notes in an offshore transaction (as defined in Regulation S thereunder) in reliance on the exemption from registration provided by Regulation S thereunder.  It acknowledges that no representation is made as to the availability of any exemption under the Securities Act or any State securities laws for resale of the Subject Notes.  It understands that the Issuer has not been registered under the Investment Company Act, and that the Issuer is exempt from registration as such by virtue of Section 3(c)(7) of the Investment Company Act.  It understands and acknowledges that the Issuer, or, on its behalf, the Collateral Manager, has the right, under the Indenture, to compel any beneficial owner of an interest in the Subject Notes that fails to comply with the foregoing requirements to sell its interest in such Subject Notes, or may sell such interest on behalf of such owner.

8.In connection with its acquisition of the Subject Notes, it (or if it is acquiring Subject Notes for any other account, each such account) acknowledges and agrees that:  (i) none of the Issuer, the Placement Agent, UBS, the Valuation Agent, the Collateral Manager, the Trustee, the Collateral Administrator or any of their respective affiliates is acting as a fiduciary or financial or investment adviser for it; (ii) it is not relying (for purposes of making any investment decision or otherwise) upon any written or oral advice, counsel or representations of the Issuer, the Placement Agent, UBS, the Valuation Agent, the Collateral Manager, the Trustee, the Collateral Administrator or any of their respective affiliates; (iii) it has participated in the preparation and negotiation of, and has read and understands, the Indenture and other Transaction Documents; (iv) it has consulted with its own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent it has deemed necessary, and has made its own investment decisions (including decisions regarding the suitability of any investment in the Subject Notes) based upon its own judgment and upon any advice from such advisers as it has deemed necessary and not upon any view expressed by the Issuer, the Placement Agent, the Valuation Agent, the Collateral Manager, the Trustee, the Collateral Administrator or any of their respective affiliates; (v) it will hold and transfer at least the minimum denomination of such Subject Notes; (vi) it (or if it checked (ii) in Section 4(a) above, each of its beneficial owners) was not formed for the purpose of investing in the Subject Notes and (vii) it is a sophisticated investor and is purchasing the Subject Notes with a full understanding of all of the terms, conditions and risks thereof, and it is capable of assuming and willing to assume those risks.

 

		
	
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9.It is (please check one as appropriate):

	
 
	
X__
	
(i)a "United States person" within the meaning of Section 7701(a)(30) of the Code, and a properly completed and signed Internal Revenue Service Form W-9 (or applicable successor form) is attached hereto as Schedule A; or 

	
 
	
___
	
(ii)not a "United States person" within the meaning of Section 7701(a)(30) of the Code, and a properly completed and signed applicable Internal Revenue Service Form W-8 (or applicable successor form) is attached hereto as Schedule A.

It understands and acknowledges that failure to provide the Issuer or the Trustee with the applicable tax certifications or the failure to meet its Noteholder Reporting Obligations may result (among other potential consequences) in withholding or back-up withholding from payments to it in respect of the Subject Notes.

10.If it is not a "United States person" (as defined in Section 7701(a)(30) of the Code), it hereby represents that it is not purchasing the Subject Notes in order to reduce its U.S. federal income tax liability pursuant to a tax avoidance plan. It also represents that it is not a member of the public in the Cayman Islands.

11.It hereby agrees to provide the Issuer and the Trustee (i) any information as is necessary (in the sole determination of the Issuer or the Trustee, as applicable) for the Issuer and the Trustee to determine whether it is a specified United States person as defined in Section 1473(3) of the Code (a "specified United States person") or a United States owned foreign entity as described in Section 1471(d)(3) of the Code (a "United States owned foreign entity"), (ii) any additional information that the Issuer or its agent requests in connection with Sections 1471‐1474 of the Code, (iii) if the United States and the Cayman Islands have entered into an intergovernmental agreement ("IGA"), such information as may be required under the IGA and rules and regulations under applicable Cayman law implementing such IGA and (iv) any additional information that the Issuer or its agent requests in connection with Cayman FATCA.

12.If it is a specified United States person or a United States owned foreign entity, it also hereby agrees to (x) provide the Issuer and the Trustee its name, address, U.S. taxpayer identification number, if it is a United States owned foreign entity, the name, address and taxpayer identification number of each of its "substantial United States owners" (as defined in Section 1473(2) of the Code) and any other information requested by the Issuer or its agent upon request and (y) update any such information provided in clause (x) promptly upon learning that any such information previously provided has become obsolete or incorrect or is otherwise required. It understands and acknowledges that the Issuer may provide such information (either directly or indirectly in accordance with any governmental agreement entered into with the Cayman Islands Government related to information required by the U.S. Internal Revenue Service) and any other information concerning its investment in the Subject Notes to the U.S. Internal Revenue Service. It understands and acknowledges that the Issuer has the right, under the Indenture, to compel any beneficial owner of an interest in the Subject Notes that fails to comply with the foregoing requirements to sell its interest in such Subject Notes, or may sell such interest on behalf of such owner.

 

		
	
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13.It acknowledges and agrees that no Subject Note (or interest therein) may be acquired or owned by any Person that is classified for U.S. federal income tax purposes as a partnership, subchapter S corporation or grantor trust unless (i) (A) none of the direct or indirect beneficial owners of any interest in such Person have or ever will have more than 40% of the value of its interest in such Person attributable to the interest of such Person in any direct or indirect interest in the Issuer, and (B) it is not and will not be a principal purpose of the arrangement involving the investment of such Person in any Subject Note to permit any partnership to satisfy the 100 partner limitation of Treas. Reg. § 1.7704‐1(h)(1)(ii), (ii) such Person obtains an Opinion of Counsel that such transfer will not cause the Issuer to be treated as a publicly traded partnership taxable as a corporation or (iii) (A) such Person is an Affiliate of the Collateral Manager, and (B) it is not and will not be a principal purpose of the arrangement involving the investment of such Person in any Subject Note to permit any partnership to satisfy the 100 partner limitation of Treas. Reg. § 1.7704 1(h)(1)(ii).

14.(i)  ERISA.  The Investor hereby represents that (A) for so long as it holds such Subject Note or interest therein, it is not, and is not acting on behalf of, a Benefit Plan Investor; and (B) if such Person is a governmental, church, non-U.S. or other plan, (I) it is not, and for so long as it holds such Subject Note or interest therein will not be, subject to any Similar Law, and (II) its acquisition, holding and disposition of its interest in such Subject Note will not constitute or result in a violation of any applicable Other Plan Laws.

(ii)Compelled Disposition.  The Investor acknowledges and agrees that:

(1)any transfer of a beneficial interest in a Subject Note to a Person who is a Benefit Plan Investor or acting on behalf of or using the assets of any Benefit Plan Investor to acquire such Subject Note (any such Person, a Non-Permitted ERISA Holder) shall be null and void and any such purported transfer of which the Issuer or the Trustee shall have notice may be disregarded by the Issuer, the Trustee and the Note Registrar for all purposes; 

(2)if any Non-Permitted ERISA Holder shall become the beneficial owner of an interest in any Subject Note, the Issuer shall, promptly after discovery that such Person is a Non-Permitted ERISA Holder by the Issuer or upon notice from the Trustee (if a Trust Officer of the Trustee obtains actual knowledge), if the Trustee makes the discovery and who agrees to notify the Issuer of such discovery, send notice to such Non-Permitted ERISA Holder demanding that such Non-Permitted ERISA Holder transfer all or any portion of the Subject Notes held by such Person to a Person that is not a Non-Permitted ERISA Holder (and that is otherwise eligible to hold such Subject Notes or an interest therein) within 20 days after the date of such notice.  If such Non-Permitted ERISA Holder fails to so transfer such Subject Notes the Issuer or the Collateral Manager acting for the Issuer shall have the right, without further notice to the Non-Permitted ERISA Holder, to sell such Subject Notes or interest in such Subject Notes to a purchaser selected by the Issuer that is not a Non-Permitted ERISA Holder (and that is otherwise eligible to hold such Subject Notes or an interest therein) on such terms as the Issuer may choose; 

 

		
	
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(3)the Issuer, or the Collateral Manager acting on behalf of the Issuer, may select the purchaser by soliciting one or more bids from one or more brokers or other market professionals that regularly deal in securities similar to the Subject Notes and sell such Subject Notes to the highest such bidder, provided that the Collateral Manager, its Affiliates and accounts, funds, clients or portfolios established and controlled by the Collateral Manager or any of its Affiliates shall be entitled to bid in any such sale (to the extent any such entity is not a Non-Permitted ERISA Holder).  However, the Issuer or the Collateral Manager may select a purchaser by any other means determined by it in its sole discretion; 

(4)by its acceptance of an interest in the Subject Notes, the Investor agrees to cooperate with the Issuer to effect such transfers;

(5)the proceeds of such sale, net of any commissions, expenses and taxes due in connection with such sale shall be remitted to us; and

(6)the terms and conditions of any sale under this sub-section shall be determined in the sole discretion of the Issuer, and the Issuer shall not be liable to us as a result of any such sale or the exercise of such discretion.

(iii)Affected Bank.  The Investor represents that it is not (or, if applicable, the entity on whose behalf it is acting is not) an "Affected Bank."  "Affected Bank" means a "bank" for purposes of Section 881 of the Code or an entity affiliated with such a bank that is neither (x) a United States Person nor (y) entitled to the benefits of an income tax treaty with the United States under which withholding taxes on interest payments made by obligors resident in the United States to such bank are reduced to 0%.

(iv)Continuing Representation; Reliance.  The Investor acknowledges and agrees that the representations contained in this Agreement shall be deemed made on each day from the date it makes such representations through and including the date on which it disposes of our interests in the Subject Notes.  It understands and agrees that the information supplied in this Agreement will be used and relied upon by the Issuer and the Trustee to determine that (i) no Benefit Plan Investors own or hold any Notes and (ii) no Affected Bank, directly or in conjunction with its affiliates, owns or holds any Notes at any time.

(v)Further Acknowledgement and Agreement.  The Investor acknowledges and agrees that (i) all of the assurances contained in this Agreement are for the benefit of the Issuer, the Trustee, Placement Agent and the Collateral Manager as third party beneficiaries hereof, (ii) copies of this agreement and any information contained herein may be provided to the Issuer, the Trustee, the Placement Agent the Collateral Manager, affiliates of any of the foregoing parties and to each of the foregoing parties' respective counsel for purposes of making the determinations described above and (iii) any acquisition or transfer of the Subject Notes by the Investor that is not in accordance with the provisions of this agreement shall be null and void from the beginning, and of no legal effect.

 

		
	
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15.It agrees not to seek to commence in respect of the Issuer, or cause the Issuer to commence, a bankruptcy proceeding before a year and a day has elapsed since the payment in full to the Holders of the Notes (and any other debt obligations of the Issuer that have been rated upon issuance by any rating agency at the request of the Issuer) issued pursuant to the Indenture or, if longer, the applicable preference period then in effect.

16.To the extent required by the Issuer, as determined by the Issuer or the Collateral Manager on behalf of the Issuer, the Issuer may, upon notice to the Trustee, impose additional transfer restrictions on the Subject Notes to comply with the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the "USA Patriot Act") and other similar laws or regulations, including, without limitation, requiring each transferee of a Subject Note to make representations to the Issuer in connection with such compliance.  

17.It agrees, for U.S. Federal income tax purposes, (i) not to treat the Notes as a partnership interest or any other equity interest in the Issuer, (ii) to treat the Issuer as a beneficial owner of the Portfolio Assets, and (iii) to report the investment by the Investor consistently with such treatment on all tax and information returns and other written communications with any taxing authority.

18.It understands that the Issuer, the Trustee and the Placement Agent will rely upon the accuracy and truth of the foregoing representations, and it hereby consents to such reliance.

19.It agrees that it shall deliver to the Issuer and its agents a properly completed and executed “Entity Self-Certification Form” or “Individual Self-Certification Form”, as applicable (in the forms published by the Cayman Islands Department for International Tax Cooperation, which forms can be obtained at http://www.tia.gov.ky/pdf/CRS_Legislation.pdf).

20.This Agreement shall be construed in accordance with, and this Agreement and all matters arising out of or relating in any way whatsoever to this Agreement (whether in contract, tort or otherwise) shall be governed by, the law of the State of New York.  

- signature page follows -

 

 

 

		
	
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Page 9

 

 

Section to be completed by Investor:

 

	
Investor's Name:
	
 
	
BC PARTNERS LENDING CORPORATION
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By (please sign):
	
 
	
/s/ Edward Gilpin
	
 
	
 

	
Name:
	
 
	
Edward Gilpin
	
 
	
 

	
Title:
	
 
	
Chief Financial Officer
	
 
	
 

	
By (please sign):
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Dated:
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Registered Name:
	
 
	
 
	
 
	
 

 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Form of Subject Notes (check one):

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___ Regulation S Global Notes ____

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___X Rule 144A Global Notes

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
"Investments" owned by Investor (check one if made a check in Section 4(b)):

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___ $5,000,000 to $25,000,000

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___ more than $25,000,000

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Wire instructions:

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Bank: _________________________

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
ABA #: ________________________

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Acct Name:_____________________

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Account #: _____________________

	
 
	
 
	
 
	
 
	
 

	
Taxpayer identification number: 82-4654271
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Address for notices:
	
 
	
 

	
650 Madison Avenue, 23rd Floor,
	
 
	
 

	
New York, NY 10022
	
 
	
 

	
Telephone:  +1 (212) 796-1806
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Attention:  Joseph Barillaro
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Subject notes to be credited to the following account:

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
DTC #:_______________________

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Ref: ________________________

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Account #: _____________________

 

 

 

	
US3400379   116788-0237
	
Subscription Agreement – Signature Page
	
 

 

 

 

	
 
	
ACCEPTED AND AGREED as of the day and year first written above

	
 
	
 

	
 
	
GREAT LAKES BCPL FUNDING LTD.

	
 
	
 

	
 
	
By:
	
 
	
/s/ Pamela Sen-Gupta

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Name: Pamela Sen-Gupta

	
 
	
 
	
 
	
Title: Director

 

 

 

 

	
US3400379   116788-0237
	
Subscription Agreement – Signature Page
	
 

 

 

Schedule A

Internal Revenue Service Form

 

 

	
US3400379   116788-0237
	
Schedule A

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