Astrea 9 - CFO Case Study

Before enforcement, on each distribution date.

1. 1

   Priority 1: Taxes and senior expenses

   USD0.9m cap

   Pay issuer and asset-company taxes and expenses not assigned to priorities 2-13. The cap applies to each six-month distribution period and adjusts proportionately for shorter or longer periods.

2. 2

   Priority 2: Senior hedge payments

   Pay amounts due under the issuer's swaps, excluding the counterparty-default or affected-party termination payments assigned to priority 12.

3. 3

   Priority 3: Manager fees

   Pay fees due to the manager.

4. 4

   Priority 4: Credit facility

   1. Commitment fees
   2. Interest and other payables
   3. Principal repayment
5. 5

   Priority 5: Class A-1 and A-2 interest

   Pay unpaid accrued interest on an equal-ranking (pari passu), pro rata basis.

6. 6

   Priority 6: Disposal proceeds

   If fund interests are sold

   Apply 100% of cash remaining after priorities 1-5, limited to the net disposal proceeds received.

   Any Class A bonds outstanding

   1. Fill Class A reserves to the cap, counting eligible banker's guarantees
   2. Repay Class B PIK principal

   All Class A bonds redeemed

   1. Repay Class B PIK principal
7. 7

   Priority 7: Scheduled Class A reserves

   Fund the reserves accounts, subject to the reserves cap.

   1. Recoup realised losses on reserve investments
   2. Pay unpaid reserve amounts
   3. Fund the current reserve amount
8. 8

   Priority 8: Class A LTV cure

   Class A LTV > 50%

   Apply 100% of cash remaining after priorities 1-7 to Class A reserves. Stop when the reserve cap is reached, including eligible banker's guarantees, or the Class A LTV no longer exceeds 50%, whichever occurs first.

9. 9

   Priority 9: Class B PIK amortisation

   All Class A bonds redeemed

   Apply 90% of cash remaining after priorities 1-8 to outstanding Class B PIK principal.

10. 10

    Priority 10: Class B / cumulative LTV cure

    Cumulative LTV > 55%

    After priorities 1-9, apply 100% of remaining cash until the cumulative LTV no longer exceeds 55%.

    Any Class A bonds outstanding

    1. Fill Class A reserves to the cap, counting eligible banker's guarantees
    2. Repay Class B PIK principal

    All Class A bonds redeemed

    1. Repay Class B PIK principal
11. 11

    Priority 11: Remaining expenses

    Pay administrative expenses above the priority 1 cap and any other expenses.

12. 12

    Priority 12: Subordinated hedge terminations

    Pay early-termination amounts where the hedge counterparty is the defaulting party following an event of default, or the affected party following a termination event.

13. 13

    Priority 13: Equity distributions

    Residual cash

    Distribute 100% of cash remaining after priorities 1-12 to equity investors.

An event of default has occurred and the bonds have been accelerated.

1. 1

   Priority 1: Taxes and enforcement expenses

   Uncapped

   Pay eligible priority 1 amounts without the normal cap. Administrative expenses qualify here only to the extent required to enforce the security or the bonds.

2. 2

   Priority 2: Senior hedge payments

   Pay amounts due and outstanding under the issuer's swaps, excluding the termination payments assigned to priority 9.

3. 3

   Priority 3: Credit facility

   1. Commitment fees
   2. Interest and other payables
   3. Principal repayment
4. 4

   Priority 4: Class A-1 and A-2 interest

   Pay unpaid accrued interest on an equal-ranking (pari passu), pro rata basis.

5. 5

   Priority 5: Class A-1 and A-2 principal

   Repay outstanding principal and any applicable premium on an equal-ranking (pari passu), pro rata basis.

6. 6

   Priority 6: Class B PIK principal

   Repay outstanding Class B PIK principal.

7. 7

   Priority 7: Remaining expenses

   Pay unpaid administrative expenses and any other expenses not included in enforcement priority 1.

8. 8

   Priority 8: Capital calls

   Pay capital calls.

9. 9

   Priority 9: Subordinated hedge terminations

   Pay early-termination amounts where the hedge counterparty is the defaulting party following an event of default, or the affected party following a termination event.

10. 10

    Priority 10: Equity distributions

    Pay equity investors after the preceding priorities.