Excess Par Amount Flush in European CLOs

Our latest review of 235 transactions issued in 2025 shows that the concept of Excess Par Amount Flush is embedded in the majority of transactions. While the concept is generally well defined, implementation varies materially. Although around 80% of the transactions clearly permit, at refinancing, the designation or transfer of Principal Proceeds to the Interest Account, we identified 44 transactions where Excess Par Amount Flush provisions were either unclear or insufficiently specified, and 63 with no meaningful conditional requirements. 

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