{
  "dataset_id":"ai-debt-investor-rules-2026-10-26",
  "reviewed_on":"2026-10-26",
  "scope":"Selected provisions from one filed CLO indenture and a separate AI financing example; not a universal investor rulebook, current holdings report or legal eligibility determination.",
  "sources":{
    "indenture":{"url":"https://www.sec.gov/Archives/edgar/data/1837532/000119312526340369/d157652dex103.htm","document_date":"2026-08-06","filing_date":"2026-08-07","issuer":"ADL CLO 3 LLC","locators":["Section 1.1 Collateral Obligation","Section 1.1 CCC Excess and Excess CCC Adjustment Amount","Section 1.1 Concentration Limitations","Section 1.1 Required Overcollateralization Ratio","Schedule 4 S&P Rating","Sections 9.1 and 11.1"]},
    "closing":{"url":"https://www.sec.gov/Archives/edgar/data/1837532/000119312526340369/d157652d8k.htm","filed":"2026-08-07","event_date":"2026-08-06","registrant":"Apollo Debt Solutions BDC","locator":"Item 1.01"},
    "credit_estimates":{"url":"https://www.spglobal.com/ratings/en/products/credit-estimates","checked_on":"2026-10-26","locator":"Overview"},
    "lambda":{"url":"https://lambda.ai/blog/lambda-closes-1-billion-senior-secured-fixed-rate-financing","published_on":"2026-10-01","locator":"Closing announcement and Facility highlights"}
  },
  "lambda_issuer_report":{"facility_usd":1008000000,"fixed_rate_percent":6.78,"ratings_as_announced":["Morningstar DBRS A (low)","Moody's Baa1"],"marketed_investor_classes":["insurance companies","fixed income investors"],"closed_announced":true,"all_facility_cash_drawn":null,"individual_investor_allocations":null,"adl_ownership_or_eligibility_established":false},
  "selected_contract_rules":{
    "rating_input":"The defined S&P Rating may use qualifying published/private inputs, specified derivation routes or credit-estimate provisions; it is not limited to a public issue rating.",
    "credit_estimate_is_credit_rating":false,
    "minimum_defined_sp_rating_at_acquisition_commitment":"CCC-",
    "ccc_concentration_replaces_acquisition_rating_floor":false,
    "credit_estimate_request_days":30,
    "missing_information_manager_input_max_days":90,
    "missing_information_fallback":"CCC- after the stated 90-day period unless an extension is granted; this is the specified missing-information branch, not every pending estimate",
    "estimate_renewal_months":12,
    "timely_information_supported_renewal":"Prior estimate may continue pending confirmation or revision",
    "recent_withdrawal_or_suspension":"Separate CCC- treatment applies under Schedule 4; do not use the ordinary pending-input path without checking this branch",
    "ccc_limit_fraction":0.20,
    "ccc_definition":"S&P Rating CCC+ or lower, excluding Defaulted and Deferring Obligations",
    "ccc_excess_selection":"Lowest market values as a percentage of par first",
    "ccc_adjustment":"Excess of CCC-excess principal over its market value",
    "ordinary_obligor_affiliate_limit_fraction":0.025,
    "exception_obligor_affiliate_limit_fraction":0.03,
    "maximum_exception_groups":5,
    "fixed_rate_limit_fraction":0.05,
    "unfunded_ddtl_and_revolving_limit_fraction":0.10,
    "class_b_required_oc_ratio":1.236,
    "oc_denominator":"Relevant class plus priority and pari-passu secured debt, including applicable unpaid deferred interest",
    "coverage_breach":"At applicable test dates, available payment-account amounts follow mandatory-redemption and priority-of-payment provisions; not automatically an Event of Default",
    "selected_definition_limits":[
      "Leases are excluded; that does not automatically classify a loan financing leased equipment.",
      "Step-Down Obligation refers to a decrease solely with passage of time, not every conditional price reduction.",
      "Bridge Loan is a defined M&A/refinancing category, not every short-term facility called a bridge.",
      "Structured Finance Obligation has SPV, financial-asset-pool and limited-recourse requirements and excludes ABL facilities; an SPV label alone is insufficient."
    ]
  },
  "illustration":{
    "label":"Selected tests on a hypothetical existing portfolio, not ADL's actual portfolio or a permitted new purchase",
    "unit":"normalized principal units",
    "total_principal":500,
    "selected_oc_debt_denominator":403,
    "other_ccc_principal":100,
    "other_ccc_market_fraction":0.80,
    "candidate_market_fraction":0.60,
    "other_noncandidate_nonccc_market_fraction":1,
    "assumptions":["Existing holdings; no new purchase is approved by this model","All acquired at par, so the illustrative current marks do not create a below-80 purchase-price Discount Obligation","All performing; no Defaulted, Deferring or Long-Dated assets and no other collateral adjustments","No deferred interest, reserve or cash-account adjustments","Other collateral is dispersed across obligors; candidate exposure includes its affiliates","Cases C and D replace other non-CCC principal to keep total par at 500","No receipt, payment or market-value change is attributed to the A/B classification comparison"],
    "cases":[
      {"id":"ccc_input","label":"A  Existing holding treated as CCC","candidate_principal":10,"candidate_is_ccc":true,"exception_available":null},
      {"id":"nonccc_input","label":"B  Same holding with a non-CCC input","candidate_principal":10,"candidate_is_ccc":false,"exception_available":null},
      {"id":"exception_needed","label":"C  Non-CCC exposure of 2.8%","candidate_principal":14,"candidate_is_ccc":false,"exception_available":null},
      {"id":"over_maximum","label":"D  Non-CCC exposure of 3.5%","candidate_principal":17.5,"candidate_is_ccc":false,"exception_available":null}
    ],
    "overall_purchase_eligibility":null,
    "not_modeled":["Full asset eligibility","Sustainability criteria","Industry/country and other concentration tests","Collateral quality and interest-coverage tests","Purchase and maintain-or-improve rules","Manager discretion and actual portfolio positions","A full cash waterfall or cure payment"]
  }
}