PF Finans / Clarinova

The security

According to terms & conditions, the Clarinova Bonds are secured by a portfolio of SLS, Senior Life Settlements.

The Company entered into a pledge argeement the 28 th of March 2011 for a portfolio of 83 life insurance policies issued in the United States, SLS, with a total face value of USD 540,458,333 million. All policies are issued in USD. Due to a positive result of a due diligence process the Company will aquire the portfolio as of 01.01.2012. The transaction will take place via a transfer of cash in a treasury account at EFG Bank, Geneva. The investments will be financed by the proceeds from the Bond issue.

Overview of the SLS in the portfolio

1 4 7 1 7 6 6 3 1 1 2 1 1 1 1

AIG

American National (ANICO)

AXA

Beneficial Life

ING Security Life of Denver

John Hancock

21

Lincoln National Life Insurance Company

MetLife

National Western Life

Ohio National Life

Pacific Life

Penn Mutual

19

Phoenix

Protective Life

Sun Life

Transamerica

United States Life

83

Total:

The face value of the individual policies varies from USD 0,8 million up to USD 30 million with an average value of USD 6,511 million.

The composition of the portfolio is executed by our SLS Provider, Clayton Advisor Group Inc., 27575 Ferry Road, Suite 103, Warrenville, Illinois 60555. The policies are described by the Provider with: case id, insurance company, policy product, face value attained age, annual premium, guaranteed age and an overall cash flow analysis of the portfolio etc. According to the Company, the portfolio is sercuring interest and redemption of the Bonds but the payments by the Company is not limited to cash flow of the SLS pootfolio. Assets in the range of 75% of the Bond issue will be pledged in favour of the Bond holders.

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