The Liberty Hampshire Co. is preparing to launch the Valcour Bay Capital Co., an asset-backed commercial paper vehicle that can issue U.S. dollar-denominated CP, callable notes, and extendible notes to buy trade receivables and other financial assets.
Valcour Bay Capital's structural features are similar to Breeds Hill Capital Ltd., a Cayman Island company established last September. Callable notes issued from Valcour Bay Capital will have final maturities of up to 397 days from issuance, with at least one opportunity to repay the notes before they mature. If the conduit issues extendible notes, then their final maturities will be dated 397 days after the date of issuance. If proceeds from the collateral account and issuance from new notes fall short of the amount needed to repay extendible notes, then all extendible notes with the same maturity date will be extended to a final maturity date 397 days from issuance. Meanwhile, the notes will offer a rate of one-month Libor plus 25 basis points.