Fair Oaks Income Limited Portfolio Update (9390Z)
27 May 2021 - 4:00PM
UK Regulatory
TIDMFAIR TIDMFA17 TIDMTTM
RNS Number : 9390Z
Fair Oaks Income Limited
27 May 2021
27 May 2021
Fair Oaks Income Limited
(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 Fund Limited (the "Company") is pleased to
announce that FOIF II LP ("Master Fund II") has entered into
binding contracts to acquire, in the primary market, EUR27.2
million notional of equity notes in Allegro CLO XIII, a new CLO
backed by a portfolio of US broadly-syndicated secured loans.
The manager of this CLO's portfolio is AXA Investment Managers,
Inc.
This CLO's current target portfolio has a principal value of
$500 million across an expected 297 unique bank loan issuers, with
an expected weighted average exposure per issuer of approximately
0.37%.
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, Master Fund II has priced a reset of Fair Oaks Loan
Funding II, a CLO backed by a portfolio of European
broadly-syndicated secured loans. The original purchase of the
equity in Fair Oaks Loan Funding II was completed in July 2020 with
a low-levered structure, a weighted average coupon for the CLO
financing of Euribor + 2.41% and a one-year reinvestment
period.
After the reset, Fair Oaks Loan Funding II will benefit from a
weighted average coupon of Euribor + 1.68% and an additional
4.5-year investment period. Because BB and B rated notes are being
added to the CLO structure, c.EUR19.5m of the initial EUR47.0m
investment will be returned to Master Fund II when the reset closes
in June.
The potential total return based on the current liquidation
value of Fair Oaks Loan Funding II, as estimated by the general
partner of Master Fund II, is 17% per annum (see Note 1).
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
Liberum Capital Limited
Chris Clarke, Investment Banking
DDI: +44 (0) 20 3100 2190
Email: chris.clarke@liberum.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 FOIF II LP and FOMC III LP) 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.
Note 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.
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END
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