Fair Oaks Income Limited Portfolio Update (6243I)
20 June 2017 - 11:00PM
UK Regulatory
TIDMFAIR TIDMFAIC TIDMFA14
RNS Number : 6243I
Fair Oaks Income Limited
20 June 2017
Fair Oaks Income Limited
20 June 2017
FAIR OAKS INCOME LIMITED (the "Company")
(Incorporated in Guernsey under The Companies (Guernsey) Law,
2008, as amended, with registered number 58123 and registered as a
Registered Closed-ended Collective Investment Scheme with the
Guernsey Financial Services Commission)
Portfolio Update
Fair Oaks Income Limited (the "Company") is pleased to announce
that FOMC II LP ("Master Fund II") has made two investments which
will result in the C share proceeds being fully invested. A further
announcement will be made shortly with details of the conversion of
the C Shares into 2017 Shares.
Master Fund II has entered into binding contracts to acquire, in
the primary market, $30 million notional of equity notes,
representing 78% of the total equity of Elevation CLO 2017-6, a new
CLO backed by a portfolio of US broadly syndicated, secured
loans.
The manager of this CLO's portfolio is 325 Fillmore, an
affiliate of ArrowMark Partners ("ArrowMark"). Arrowmark, formerly
known as Arrowpoint, is a 100% employee owned investment manager
focused on credit-oriented fixed income and selected equity
strategies with over $12bn in assets under management. ArrowMark
manages seven CLOs.
This CLO's current target portfolio has a principal value of
$400 million across an expected 187 bank loan issuers, with an
expected weighted average exposure per issuer of approximately
0.6%. The potential total return for this investment as estimated
by the general partner of Master Fund II is between 15% and 17% per
annum (see Note 1).
In addition, the Company is pleased to announce that Master Fund
II has also entered into binding contracts to invest $17 million in
a newly established co-investment vehicle which will acquire, in
the secondary market, majority equity positions in three CLOs
managed by Mariner Investment Group ("Mariner"). Mariner is a
subsidiary of Orix Corporation, a global financial services firm
with over $300 billion in assets under management. The potential
total return for this investment as estimated by the general
partner of Master Fund II is between 15% and 16% per annum (see
Note 1).
The acquisition vehicle for the Mariner CLOs will be managed by
the general partner of Master Fund II, without any additional fees
being charged to Master Fund II. Income and principal received by
the acquisition vehicle will be distributed to Master Fund II for
distribution or reinvestment in accordance with its terms.
Both investments will be funded by a final draw-down from the C
Share pool, following which the C Shares will have an interest in
Master Fund II and c.$2 million of cash. The Investment Adviser's
strong access to primary and secondary opportunities has provided
Master Fund II with a transaction pipeline which has resulted in an
effective deployment of capital ahead of original expectations, and
which the General Partner believes continues to offer attractive
investment opportunities for the Master Fund.
Enquiries:
Fair Oaks Income Limited
Email: contact@fairoaksincome.com
Web: www.fairoaksincome.com
Fair Oaks Capital Limited
Miriam Macor
DDI: +44 (0) 20 3034 0410
Email: mmacor@fairoakscap.com
Praxis Fund Services Limited
Ben Le Prevost
DDI: +44 (0) 1481 755524
Email: Ben.LePrevost@praxisifm.com
Numis Securities Limited
Nathan Brown, Corporate Broking Advisory
DDI: +44 (0) 20 7260 1426
Email: n.brown@numis.com
Fair Oaks Income Limited
Fair Oaks Income Limited is a registered closed-ended investment
company incorporated in Guernsey. The Company was admitted to
trading on the Specialist Fund Market of the London Stock Exchange
(now the Specialist Fund Segment of the Main Market of the London
Stock Exchange) on 12 June 2014.
The investment policy of the Company is to invest (either
directly and/or indirectly through the Master Fund and/or Master
Fund II) in US and European CLOs or other vehicles and structures
which provide exposure to portfolios consisting primarily of US and
European floating-rate senior secured loans and which may include
non-recourse financing. The Company will implement its investment
policy by remaining invested in the Master Fund and making new
investments in Master Fund II.
Notes
1) The General Partner's estimate of the potential total return
for this investment in calculated across certain scenarios and
subject to certain assumptions. This and any other references
herein to potential future returns or distributions are targets and
not forecasts and there can be no guarantee or assurance that they
will be achieved.
This document is for information purposes only and is not an
offer to invest. All investments are subject to risk. Past
performance is no guarantee of future returns. Prospective
investors are advised to seek expert legal, financial, tax and
other professional advice before making any investment
decisions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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