# Investor rules and selected portfolio tests

This package combines selected provisions from the August 6, 2026 ADL CLO 3 indenture, filed August 7, with a separate Lambda financing example. It does not identify ADL as a holder or prospective buyer of AI debt. The rules are not universal for CLOs, Apollo, insurers or fixed-income funds.

## Reproduce

Keep evidence.json, portfolio.mjs and verify.mjs together. Run `node portfolio.mjs --write`, then `node verify.mjs`. No package is required for the calculation. The renderer produces SVG; PNG output requires Sharp, optionally supplied through AIC_SHARP_MODULE.

## What the model measures

The model considers an already-held hypothetical portfolio. Its 500 total principal, 403 relevant debt denominator, marks and classifications are assumed. It borrows the selected 20% CCC threshold and 123.60% Class B OC requirement from the filed case. All assets are assumed acquired at par; current marks below 80 do not by themselves invoke the contract's purchase-price-based Discount Obligation definition. All other collateral adjustments, deferred interest and cash-account effects are excluded.

CCC excess is allocated to the lowest market-value fractions first, proportionally if a boundary splits a modeled bucket. The loss from par on that selected excess reduces the illustrative OC numerator. The calculation is a limited mechanical illustration, not the collateral administrator's complete calculation.

Cases A and B hold the same principal and assumed market values. A change in the assumed CCC input changes the covenant measure, not cash, market value or economic profit. Case A is already above the concentration limit; it is not an approved new acquisition. Cases C and D replace other non-CCC principal to keep total par fixed and examine the obligor-and-affiliate limit. A 2.8% exposure requires confirmation of an exception; 3.5% exceeds even the stated maximum. All overall purchase-eligibility outputs remain null.

The 403 denominator includes hypothetical relevant priority debt and assumes no deferred interest. The model does not calculate interest coverage, the full waterfall, a cure payment, all eligibility tests, purchase/maintain-or-improve conditions, manager discretion or the availability of actual portfolio positions. A coverage-test breach is not automatically borrower default or an Event of Default.

## Credit opinions and definitions

An S&P Credit Estimate is not a credit rating even when the indenture allows it as a contractual rating input. The 30-day information/application rule, missing-information 90-day branch, recent-withdrawal treatment and annual renewal provisions require their full conditions. A customer rating does not automatically become a borrower or qualifying-guarantor rating.

At the commitment to acquire, the selected Collateral Obligation definition requires an indenture-defined S&P Rating of at least CCC-. The 20% CCC concentration bucket does not permit acquisition below that floor. Post-acquisition deterioration, default and deferring treatment are separate questions.

Contract definitions matter: a time-only rate decrease is distinct from a rating-triggered decrease; an M&A bridge definition is narrower than an everyday bridge label; SPV form alone does not establish a Structured Finance Obligation; and excluding a lease does not classify every equipment-backed loan.

Reuse the original figures and calculations with AI Infra Credit attribution, the report link and their assumptions. Do not present the outputs as an actual rating, legal opinion, investment approval or estimate of new cash raised.