Ann: Otto Debt-Free and Unhedged, page-8

No hedging requirements? They have to hedge if they draw A2 - it's just written in a way that brushes it off. There is also nothing to say that tranche B doesn't have a hedging requirement. Given that B is unamended from the original deal other than interest rate and repayment/maturity terms it's highly likely to have the same terms as Tranche A, which required 80% of PDP.

This is my gripe around poor communication. They clearly didn't want to highlight the hedging restrictions after leading with a title like that. That's no excuse for not being extremely clear in the wording. Yep, you could argue differently around tranche B - but doesn't that just prove the point... we're in the dark again. As soon as I read the superfluous use of incremental in the second line of the MU statement I was annoyed.

Plain english. Not hard.