Fair Oaks Income Limited Portfolio Update (0544S)
21 June 2018 - 4:00PM
UK Regulatory
TIDMFAIR TIDMTTM TIDMFA14
RNS Number : 0544S
Fair Oaks Income Limited
21 June 2018
Fair Oaks Income Limited
21 June 2018
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 FOIF LP ("Master Fund I") has exercised its rights as control
equity investor to call (liquidate) Ares XXXV CLO. Ares XXXV was
established in September 2015 and ended its reinvestment period in
October 2017. The Company estimates that the total return generated
for this investment will be 17% (see Note 1), above its original
15-16% expected at the time of investment.
FOMC II LP ("Master Fund II") has entered into binding contracts
to acquire, in the primary market, $26.0 million notional of equity
notes, representing 69% of the total equity of Ares XXXVR CLO, a
new CLO managed by Ares Management. Upon closing, Ares XXXVR CLO
will acquire the loan portfolio from Ares XXXV CLO at mid-market
price.
Ares Management is a global alternative investment manager with
approximately $106 billion in assets under management.
The CLO's target portfolio has a principal value of $400 million
with expected holdings of 282 unique bank loan issuers, with an
expected weighted average exposure per issuer of 0.35%.
The potential total return for this investment as estimated by
the general partner of Master Fund II is between 14% and 16% per
annum (see Note 2).
In addition, Master Fund II has entered into binding contracts
to acquire, in the primary market, $30.0 million of equity notes,
representing 61% of the total equity of Shackleton XII CLO, a new
CLO backed by a portfolio of US broadly syndicated, secured
loans.
The manager of this CLO's portfolio is Alcentra NY, LLC, a
subsidiary of BNY Alcentra Group Holdings. Alcentra Group Holdings
is a global specialist sub-investment grade corporate debt
management business with $35.7 billion of assets under
management.
The CLO's target portfolio has a principal value of $500 million
across an expected 268 unique bank loan issuers, with an expected
weighted average exposure per issuer of 0.29%.
The potential total return for this investment as estimated by
the general partner of Master Fund II is between 14% and 15% per
annum (see Note 2).
Notes:
1) Expected return calculated from inception, as of
19-Jun-18.
2) The General Partner's estimate of the potential total return
for this investment is 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.
LEI: 2138008KETEC1WM5YP90
Enquiries:
Fair Oaks Income Limited
Email: contact@fairoaksincome.com
Web: www.fairoaksincome.com
Fair Oaks Capital Limited
Investor Relations
DDI: +44 (0) 20 3034 0400
Email: ir@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
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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